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5. INVESTMENT IN JOINT VENTURES

9 Months Ended

Sep. 30, 2013

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 nine months ended September 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		4,481
Distribution of earnings		(5,624	)
Balance as of September 30, 2013	$	28,610

We received management service fees from the centers underlying these joint ventures of approximately $2.3 million and $2.2 million for the three months ended September 30, 2013 and 2012, respectively, and $7.0 million and $5.6 million for the nine months ended September 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 September 30, 2013 and for the nine months ended September 30, 2013 and 2012 (in thousands):

Balance Sheet Data:	September 30, 2013
Current assets	$	15,521
Noncurrent assets		49,361
Current liabilities		(6,995	)
Noncurrent liabilities		(6,487	)
Total net assets	$	51,400
Book value of Radnet joint venture interests	$	23,222
Cost in excess of book value of acquired joint venture interests		5,059
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		329
Total value of Radnet joint venture interests	$	28,610
Total book value of other joint venture partner interests	$	28,178

Income Statement Data for the nine months ended September 30,		2013		2012
Net revenue	$	68,912	$	60,954
Net income	$	9,819	$	9,011

- 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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