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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Schedule of service fee revenue

Our service fee revenue, net of contractual allowances and discounts, the provision for bad debts, and revenue under capitation arrangements for the years ended December 31, are summarized in the following table (in thousands) :

		Years Ended December 31,
		2017				2016				2015
Commercial insurance		$	571,369			$	539,793			$	486,489
Medicare			193,166				187,941				168,545
Medicaid			25,821				28,170				23,948
Workers' compensation/personal injury			35,195				36,548				32,728
Other (1)			31,627				29,135				35,046
Service fee revenue, net of contractual allowances and discounts			857,178				821,587				746,756
Provision for bad debts			(46,555	)			(45,387	)			(36,033	)
Net service fee revenue			810,623				776,200				710,723
Revenue under capitation arrangements			111,563				108,335				98,905
Total net revenue		$	922,186			$	884,535			$	809,628

⁽¹⁾ Other consists of revenue from teleradiology services, consulting fees and software revenue

Schedule of fair value of derivatives

Below represents the fair value of our 2016 Caps and loss (gain) recognized:

For the twelve months ended December 31, 2017
Derivatives		Balance Sheet Location		Fair Value – Liabilities
Interest rate contracts		Current and other non-current liabilities		$	(595	)

For the twelve months ended December 31, 2016
Derivatives		Balance Sheet Location			Fair Value – Asset Derivatives
Interest rate contracts		Current assets		$	818

Schedule of effect of derivative instruments on comprehensive income

A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive (loss) income, net of taxes is as follows (amounts in thousands):

For the twelve months ended December 31, 2017
Effective Interest Rate Cap	Amount of Loss Recognized on Derivative	Location of Loss Recognized in Income on Derivative
Interest rate contracts	($880)	Other Comprehensive Loss

For the twelve months ended December 31, 2016
Effective Interest Rate Cap	Amount of Gain Recognized on Derivative	Location of Gain Recognized in Income on Derivative
Interest rate contracts	$508	Other Comprehensive Income

Schedule of fair value of assets and liabilities

The table below summarizes the estimated fair values of certain of our financial assets that are subject to fair value measurements, and the classification of these assets in our consolidated balance sheets, as follows (in thousands):

		As of December 31, 2017
		Level 1				Level 2				Level 3				Total
Current and other non-current liabilities
Interest Rate Contracts		$	–			$	(595	)		$	–			$	(595	)

		As of December 31, 2016
		Level 1				Level 2				Level 3				Total
Current assets
Interest Rate Contracts		$	–			$	818			$	–			$	818

The table below summarizes the estimated fair value and carrying amount of our long-term debt as follows (in thousands):

		As of December 31, 2017
		Level 1				Level 2				Level 3				Total Fair Value				Total Face Value
First Lien Term Loans		$	–			$	628,801			$	–			$	628,801			$	620,272

		As of December 31, 2016
		Level 1				Level 2				Level 3				Total				Total Face Value
First Lien Term Loans		$	–			$	483,129			$	–			$	483,129			$	478,938
Second Lien Term Loans		$	–			$	167,580			$	–			$	167,580			$	168,000

Schedule of earnings per share

Earnings per share is based upon the weighted average number of shares of common stock and common stock equivalents outstanding, net of common stock held in treasury, as follows (in thousands except share and per share data):

		Years Ended December 31,
		2017				2016				2015
Net income attributable to RadNet, Inc. common stockholders		$	53			$	7,230			$	7,709
BASIC NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period			46,880,775				46,244,188				43,805,794
Basic net income per share attributable to RadNet, Inc. common stockholders		$	0.00			$	0.16			$	0.18
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period			46,880,775				46,244,188				43,805,794
Add nonvested restricted stock subject only to service vesting			274,940				220,416				865,326
Add additional shares issuable upon exercise of stock options and warrants			246,206				190,428				500,252
Weighted average number of common shares used in calculating diluted net income per share			47,401,921				46,655,032				45,171,372
Diluted net income per share attributable to RadNet, Inc. common stockholders		$	0.00			$	0.15			$	0.17
Stock options excluded from the computation of diluted per share amounts:
Weighted average shares for which the exercise price exceeds average market price of common stock			175,037				245,313				260,000

Schedule of investment in joint ventures

The following table is a summary of our investment in joint ventures during the years ended December 31, 2017 and December 31, 2016 (in thousands):

Balance as of December 31, 2015		$	33,584
Equity contributions in existing and purchase of interest in joint ventures			3,084
Equity in earnings in these joint ventures			9,767
Distribution of earnings			(2,926	)
Balance as of December 31, 2016		$	43,509
Equity contributions in existing and purchase of interest in joint ventures			4,062
Equity in earnings in these joint ventures			13,554
Distribution of earnings			(8,690	)
Balance as of December 31, 2017		$	52,435

Schedule of Joint venture investment and financial information

The following table is a summary of key unaudited financial data for these joint ventures as of December 31, 2017 and 2016, respectively, and for the years ended December 31, 2017, 2016 and 2015, respectively, (in thousands):

		December 31,
Balance Sheet Data:		2017				2016
Current assets		$	47,813			$	40,093
Noncurrent assets			107,481				100,146
Current liabilities			(16,655	)			(14,077	)
Noncurrent liabilities			(42,072	)			(44,405	)
Total net assets		$	96,567			$	81,757
Book value of RadNet joint venture interests		$	45,935			$	38,539
Cost in excess of book value of acquired joint venture interests accounted for as equity method goodwill			6,500				4,970
Total value of RadNet joint venture interests		$	52,435			$	43,509
Total book value of other joint venture partner interests		$	50,632			$	43,218

		2017				2016				2015
Net revenue		$	188,849			$	160,134			$	125,544
Net income		$	28,644			$	21,933			$	19,485

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