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5. INVESTMENT IN JOINT VENTURES
 6 Months Ended
Jun. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Joint Ventures

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.   

 

The following table is a roll forward of our investment in joint ventures during the six months ended June 30, 2013 (in thousands):

 

Balance as of December 31, 2012  $28,598 
Acquisition of a controlling interest in a joint venture (see Note 2)   (648)
Purchase of a 40% interest in a new joint venture (see Note 2)   1,000 
Equity contributions in existing joint ventures   803 
Equity earnings in these joint ventures   2,864 
Distribution of earnings   (3,971)
Balance as of June 30, 2013  $28,646 

 

We received management service fees from the centers underlying these joint ventures of approximately $2.7 million and $1.7 million for the three months ended June 30, 2013 and 2012, respectively, and $4.7 million and $3.4 million for the six months ended June 30, 2013 and 2012, respectively, and eliminated the uncollected portion of the fees earned associated with our ownership from our net revenue with an offsetting increase to our equity earnings.

 

The following table is a summary of key financial data for these joint ventures as of June 30, 2013 and for the six months ended June 30, 2013 and 2012 (in thousands):

 

Balance Sheet Data:  June 30, 2013     
Current assets  $14,802      
Noncurrent assets   49,216      
Current liabilities   (6,995)     
Noncurrent liabilities   (6,286)     
Total net assets  $50,737      
           
Book value of Radnet joint venture interests  $22,880      
Cost in excess of book value of acquired joint venture interests   5,273      
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet   493      
Total value of Radnet joint venture interests  $28,646      
           
Total book value of other joint venture partner interests  $27,857      
           
Income Statement Data for the six months ended June 30,   2013    2012 
           
Net revenue  $45,209   $41,955 
Net income  $5,952   $7,016