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SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended
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Jun. 30, 2020
Accounting Policies [Abstract] |
Service Fee Revenue | Our total revenues during the three and six months ended June 30, 2020 and 2019 are presented in the table below based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
2020 |  | 2019 |  | 2020 |  | 2019
Commercial insurance | $ | 96,349 |  |  | $ | 160,185 |  |  | $ | 251,711 |  |  | $ | 311,899 |
Medicare | 35,082 |  |  | 60,151 |  |  | 92,587 |  |  | 114,280 |
Medicaid | 4,300 |  |  | 7,295 |  |  | 10,980 |  |  | 14,423 |
Workers' compensation/personal injury | 7,359 |  |  | 11,014 |  |  | 17,916 |  |  | 22,062 |
Other patient revenue | 3,549 |  |  | 6,017 |  |  | 9,217 |  |  | 11,858 |
Management fee revenue | 3,332 |  |  | 1,753 |  |  | 5,899 |  |  | 3,870 |
Teleradiology and Software revenue | 2,200 |  |  | 4,063 |  |  | 5,971 |  |  | 8,449 |
Other | 3,527 |  |  | 7,693 |  |  | 9,750 |  |  | 14,003 |
Service fee revenue | 155,698 |  |  | 258,171 |  |  | 404,031 |  |  | 500,844 |
Revenue under capitation arrangements | 34,868 |  |  | 30,926 |  |  | 68,099 |  |  | 59,803 |
Total revenue | $ | 190,566 |  |  | $ | 289,097 |  |  | $ | 472,130 |  |  | $ | 560,647 |
Schedule of goodwill and other intangible assets | Activity in goodwill for the six months ended June 30, 2020 is provided below (in thousands):
Balance as of December 31, 2019 | $ | 441,973 |
Goodwill acquired through the acquisition of Olney Open MRI, LLC | 601 |
Goodwill acquired through the acquisition of MRI at Woodbridge, LLC | 1,833 |
Goodwill acquired through the acquisition of DeepHealth, Inc. | 23,396 |
Balance as of June 30, 2020 | $ | 467,803 |
Effect of derivative instruments on comprehensive income | A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive loss of the 2019 swaps which remain effective is as follows (amounts in thousands):
For the three months ended June 30, 2020
Account |  | April 1, 2020 Balance |  | Amount of comprehensive loss recognized on derivative net of taxes |  | Amount of loss reclassified out of accumulated OCI into income (prior period effective portion) |  | June 30, 2020 Balance |  | Location
Accumulated Other Comprehensive Loss, net of taxes |  | $ | (24,699 | ) |  | $ | (599 | ) |  | $ | 892 |  |  | $ | (24,406 | ) |  | Liabilities and Equity
For the six months ended June 30, 2020
Account |  | January 1, 2020 Balance |  | Amount of comprehensive loss recognized on derivative net of taxes |  | Amount of loss reclassified out of accumulated OCI into income (prior period effective portion) |  | June 30, 2020 Balance |  | Location
Accumulated Other Comprehensive Loss, net of taxes |  | $ | (5,870 | ) |  | $ | (19,428 | ) |  | $ | 892 |  |  | $ | (24,406 | ) |  | Liabilities and Equity
A tabular presentation of the effect of derivative instruments on our statement of operations of the 2019 Swaps for the Swaps that became ineffective during the second quarter is as follows (amounts in thousands):
For the three months ended June 30, 2020
Ineffective interest rate swap |  | Amount of loss recognized in income on derivative (current period ineffective portion) |  | Location of loss recognized in Income on derivative (current period ineffective portion) |  | Amount of loss reclassified from accumulated OCI into income (prior period effective portion) |  | Location of gain (Loss) reclassified from accumulated OCI into income (prior period effective portion)
Interest rate contracts |  | $ | (3,843 | ) |  | Other income (expense) |  | $ | (892 | ) |  | Interest income (expense)
A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive loss of the 2016 Caps is as follows (amounts in thousands):
For the three months ended June 30, 2020
Account |  | April 1, 2020 Balance |  | Amount of comprehensive gain recognized on derivative net of taxes |  | June 30, 2020 Balance |  | Location
Accumulated Other Comprehensive Loss, net of taxes |  | (1,597 | ) |  | 188 |  |  | (1,409 | ) |  | Liabilities and Equity
For the six months ended June 30, 2020
Account |  | January 1, 2020 Balance |  | Amount of comprehensive gain recognized on derivative net of taxes |  | June 30, 2020 Balance |  | Location
Accumulated Other Comprehensive Loss, net of taxes |  | (1,877 | ) |  | 468 |  |  | (1,409 | ) |  | Liabilities and Equity
Schedule of fair value of assets and liabilities | The table below summarizes the estimated fair value compared to our face value of our long-term debt as follows (in thousands):
| As of June 30, 2020
Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value |  | Total Face Value
First Lien Term Loans and SunTrust Term Loan | $ | — |  |  | $ | 650,954 |  |  | $ | — |  |  | $ | 650,954 |  |  | $ | 684,051 |
| As of December 31, 2019
Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Total Face Value
First Lien Term Loans and SunTrust Term Loan | $ | — |  |  | $ | 708,948 |  |  | $ | — |  |  | $ | 708,948 |  |  | $ | 705,699 |
The tables below summarize the estimated fair values of certain of our financial assets that are subject to fair value measurements, and the classification of these assets on our condensed consolidated balance sheets, as follows (in thousands):
| As of June 30, 2020
Level 1 |  | Level 2 |  | Level 3 |  | Total
Current and long term liabilities |  |  |  |  |  |  |  |  |  |  |
2016 caps - Interest Rate Contracts | $ | — |  |  | $ | 446 |  |  | $ | — |  |  | $ | 446 |
2019 swaps - Interest Rate Contracts | $ | — |  |  | $ | 39,304 |  |  | $ | — |  |  | $ | 39,304 |
| As of December 31, 2019
Level 1 |  | Level 2 |  | Level 3 |  | Total
Current and long term liabilities |  |  |  |  |  |  |  |  |  |  |
2016 caps - Interest Rate Contracts | $ | — |  |  | $ | 1,081 |  |  | $ | — |  |  | $ | 1,081 |
2019 swaps - Interest Rate Contracts | $ | — |  |  | $ | 9,477 |  |  | $ | — |  |  | $ | 9,477 |
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):
| Three Months Ended June 30, |  | Six Months Ended June 30,
2020 |  | 2019 |  | 2020 |  | 2019
Net loss (income) attributable to RadNet, Inc.'s common stockholders | $ | (10,594 | ) |  | $ | 4,899 |  |  | $ | (26,952 | ) |  | $ | 1,165 |
BASIC AND DILUTED NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS |  |  |  |  |  |  |
Weighted average number of common shares outstanding during the period | 50,672,219 |  |  | 49,702,869 |  |  | 50,483,274 |  |  | 49,490,234 |
Basic and diluted net (loss) income per share attributable to RadNet, Inc.'s common stockholders | $ | (0.21 | ) |  | $ | 0.10 |  |  | $ | (0.53 | ) |  | $ | 0.02 |
DILUTED NET INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS |  |  |  |  |  |  |
Weighted average number of common shares outstanding during the period | 50,672,219 |  |  | 49,702,869 |  |  | 50,483,274 |  |  | 49,490,234 |
Add nonvested restricted stock subject only to service vesting | — |  |  | 134,260 |  |  | — |  |  | 186,779 |
Add additional shares issuable upon exercise of stock options and warrants | — |  |  | 307,411 |  |  | — |  |  | 311,023 |
Weighted average number of common shares used in calculating diluted net income per share | 50,672,219 |  |  | 50,144,540 |  |  | 50,483,274 |  |  | 49,988,036 |
Diluted net income per share attributable to RadNet, Inc.'s common stockholders | $ | (0.21 | ) |  | $ | 0.10 |  |  | $ | (0.53 | ) |  | $ | 0.02 |
Investment in joint ventures | The following table is a summary of our investment in joint ventures during the six months ended June 30, 2020 (in thousands):
Balance as of December 31, 2019 | $ | 34,470 |
Equity in earnings in these joint ventures | 2,900 |
Balance as of June 30, 2020 | $ | 37,370 |
Joint venture investment and financial information | The following table is a summary of key balance sheet data for these joint ventures as of June 30, 2020 and December 31, 2019 and income statement data for the six months ended June 30, 2020 and 2019 (in thousands):
Balance Sheet Data: | June 30, 2020 |  | December 31, 2019
Current assets | $ | 32,318 |  |  | $ | 27,427 |
Noncurrent assets | 67,307 |  |  | 61,037 |
Current liabilities | (10,677 | ) |  | (9,217 | )
Noncurrent liabilities | (22,572 | ) |  | (18,872 | )
Total net assets | $ | 66,376 |  |  | $ | 60,375 |
Book value of RadNet joint venture interests | $ | 30,894 |  |  | $ | 28,001 |
Cost in excess of book value of acquired joint venture interests and other | 6,476 |  |  | 6,469 |
Total value of Radnet joint venture interests | $ | 37,370 |  |  | $ | 34,470 |
Total book value of other joint venture partner interests | $ | 35,482 |  |  | $ | 32,374 |
Income statement data for the six months ended June 30, | 2020 |  | 2019
Net revenue | $ | 43,849 |  |  | $ | 55,624 |
Net income | $ | 6,001 |  |  | $ | 8,723 |

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