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4. INVESTMENT IN JOINT VENTURES

3 Months Ended

Mar. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

NOTE 4 – 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 three months ended March 31, 2014 (in thousands):

Balance as of December 31, 2013	$	28,949
Equity contributions in existing joint ventures		789
Equity earnings in these joint ventures		1,067
Distribution of earnings		(1,866	)
Balance as of March 31, 2014	$	28,939

We received management service fees from the centers underlying these joint ventures of approximately $2.4 million and $2.0 million for the three months ended March 31, 2014 and 2013, respectively. We eliminate from total fees recorded the uncollected portion at period end of these fees that are associated with our ownership interests and offset this with an increase to our equity earnings.

The following table is a summary of key financial data for these joint ventures as of March 31, 2014 (in thousands) and for the three months ended March 31, 2014 and 2013 (in thousands):

Balance Sheet Data:	March 31, 2014

Current assets	$	15,912
Noncurrent assets		48,119
Current liabilities		(5,127	)
Noncurrent liabilities		(6,302	)
Total net assets	$	52,602

Book value of Radnet joint venture interests	$	23,792
Cost in excess of book value of acquired joint venture interests		4,772
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		375
Total value of Radnet joint venture interests	$	28,939
Total book value of other joint venture partner interests	$	28,810

Income Statement Data for the three months ended March 31,	2014		2013

Net revenue	$	22,806	$	22,281
Net income	$	2,149	$	2,733

- 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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