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NOTE 6 - INVESTMENT IN JOINT VENTURES

9 Months Ended

Sep. 30, 2012

Equity Method Investments and Joint Ventures Disclosure [Text Block]

We have nine unconsolidated joint ventures with ownership interests ranging from 35% to 50%. These joint ventures represent partnerships with hospitals, health systems or radiology practices and were formed for the purpose of owning and operating diagnostic imaging centers. Professional services at the joint venture diagnostic imaging centers are performed by contracted radiology practices or a radiology practice that participates in the joint venture. Our investment in these joint ventures is accounted for under the equity method. Investment in joint ventures increased approximately $4.3 million to $26.6 million at September 30, 2012 compared to $22.3 million at December 31, 2011. This increase is summarized as follows (in thousands):

Investment in joint ventures at December 31, 2011	$	22,326
Fair value of remaining interest in de-consolidated joint venture (see Note 2)		1,936
Initial investment in joint venture imaging center located in Cedar Knolls, New Jersey (see Note 2)		1,836
Additional investment in an existing joint venture imaging center		920
Final purchase accounting adjustment to the fair value of joint venture interests acquired with our acquisition of Raven Holdings (see Note 2)		933
Equity in earnings of joint ventures for the nine months ended September 30, 2012		4,157
Distributions from joint ventures received during the nine months ended September 30, 2012		(5,526	)
Investment in joint ventures at September 30, 2012	$	26,582

We received management service fees from the centers underlying these joint ventures of approximately $2.2 million and $1.7 million for the three months ended September 30, 2012 and 2011, respectively, and $5.6 million and $5.1 million for the nine months ended September 30, 2012 and 2011, respectively. We offset the portion of the fees earned from our service reference associated with our ownership with an increase to our equity earnings.

The following table is a summary of key financial data for these joint ventures as of September 30, 2012 and for the nine months ended September 30, 2012 and 2011 (in thousands):

Balance Sheet Data:	September 30, 2012
Current assets	$	16,406
Noncurrent assets		39,937
Current liabilities		(6,377	)
Noncurrent liabilities		(4,848	)
Total net assets	$	45,118

Book value of RadNet joint venture interests	$	22,813
Cost in excess of book value of acquired joint venture interests		3,511
Elimination of intercompany profit remaining on RadNet's consolidated balance sheet		258
Total value of RadNet joint venture interests	$	26,582

Total book value of other joint venture partner interests	$	22,305

Income statement data for the nine months ended September 30,		2012			2011

Net revenue	$	60,954		$	55,984
Net income	$	9,011		$	8,495

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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