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SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended
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Sep. 30, 2021
Accounting Policies [Abstract] |
Schedule of Service Fee Revenue | Our total service revenues during the three and nine months ended September 30, 2021 and 2020 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 September 30, |  | Nine Months Ended September 30,
2021 |  | 2020 |  | 2021 |  | 2020
Commercial insurance | $ | 185,723 |  |  | $ | 160,524 |  |  | $ | 555,355 |  |  | $ | 412,415 |
Medicare | 73,163 |  |  | 62,704 |  |  | 207,977 |  |  | 154,847 |
Medicaid | 8,707 |  |  | 7,098 |  |  | 26,198 |  |  | 18,072 |
Workers' compensation/personal injury | 11,554 |  |  | 7,183 |  |  | 32,507 |  |  | 25,705 |
Other patient revenue | 4,800 |  |  | 8,328 |  |  | 14,766 |  |  | 17,211 |
Management fee revenue | 5,255 |  |  | 2,675 |  |  | 16,007 |  |  | 8,574 |
Teleradiology and Software revenue | 2,564 |  |  | 2,349 |  |  | 7,611 |  |  | 8,319 |
Other | 3,641 |  |  | 5,869 |  |  | 10,058 |  |  | 15,617 |
Service fee revenue | 295,407 |  |  | 256,730 |  |  | 870,479 |  |  | 660,760 |
Revenue under capitation arrangements | 37,283 |  |  | 35,046 |  |  | 111,449 |  |  | 103,145 |
Total service revenue | $ | 332,690 |  |  | $ | 291,776 |  |  | $ | 981,928 |  |  | $ | 763,905 |
Schedule of Goodwill and Other Intangible Assets | Activity in goodwill for the nine months ended September 30, 2021 is provided below (in thousands):
Balance as of December 31, 2020 | $ | 472,879 |
Goodwill acquired through acquisitions | 29,754 |
Goodwill attributable to formation of Simi Valley Imaging Group LLC | 105 |
Other Adjustments | (28) |
Balance as of September 30, 2021 | $ | 502,710 |
Schedule of Effect of Derivative Instruments on Comprehensive Loss | A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive loss of the 2019 Swaps which remain ineffective is as follows (amounts in thousands):
For the three months ended September 30, 2021
Account |  | June 30, 2021 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), net of taxes |  | September 30, 2021 Balance |  | Location
Accumulated Other Comprehensive Loss, net of taxes |  | $ | (20,736) |  |  | $ | — |  |  | $ | 920 |  |  | $ | (19,816) |  |  | Equity
For the nine months ended September 30, 2021
Account |  | December 31, 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), net of taxes |  | September 30, 2021 Balance |  | Location
Accumulated Other Comprehensive Loss, net of taxes |  | $ | (22,581) |  |  | $ | — |  |  | $ | 2,765 |  |  | $ | (19,816) |  |  | Equity
A tabular presentation of the effect of derivative instruments on our statement of operations of the 2019 Swaps which remain ineffective is as follows (amounts in thousands):
For the three months ended September 30, 2021
Ineffective interest rate swap |  | Amount of gain recognized in income on derivative (current period ineffective portion) |  | Location of gain recognized in Income on derivative (current period ineffective portion) |  | Gross amount of loss reclassified from accumulated OCI into income (prior period effective portion) |  | Location of loss reclassified from accumulated OCI into income (prior period effective portion)
Interest rate contracts |  | $ | 2,870 |  |  | Other income (expense) |  | $ | (1,245) |  |  | Interest Expense
For the nine months ended September 30, 2021
Ineffective interest rate swap |  | Amount of gain recognized in income on derivative (current period ineffective portion) |  | Location of gain recognized in Income on derivative (current period ineffective portion) |  | Gross amount of loss reclassified from accumulated OCI into income (prior period effective portion) |  | Location of loss reclassified from accumulated OCI into income (prior period effective portion)
Interest rate contracts |  | $ | 14,149 |  |  | Other income (expense) |  | $ | (3,735) |  |  | Interest Expense
Schedule of Fair Value of Assets and Liabilities | 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 September 30, 2021
Level 1 |  | Level 2 |  | Level 3 |  | Total
Current and long term liabilities |  |  |  |  |  |  |
2019 Swaps - Interest Rate Contracts | $ | — |  |  | $ | 23,839 |  |  | $ | — |  |  | $ | 23,839 |
| As of December 31, 2020
Level 1 |  | Level 2 |  | Level 3 |  | Total
Current and long term liabilities |  |  |  |  |  |  |
2019 Swaps - Interest Rate Contracts | $ | — |  |  | $ | 37,989 |  |  | $ | — |  |  | $ | 37,989 |
The table below summarizes the estimated fair value compared to our face value of our long-term debt as follows (in thousands):
| As of September 30, 2021
Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value |  | Total Face Value
First Lien Term Loans and SunTrust Term Loan | $ | — |  |  | $ | 769,380 |  |  | $ | — |  |  | $ | 769,380 |  |  | $ | 771,188 |
| As of December 31, 2020
Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value |  | Total Face Value
First Lien Term Loans and SunTrust Term Loan | $ | — |  |  | $ | 661,640 |  |  | $ | — |  |  | $ | 661,640 |  |  | $ | 662,403 |
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):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
2021 |  | 2020 |  | 2021 |  | 2020
Net income (loss) attributable to RadNet, Inc.'s common stockholders | $ | 16,220 |  |  | $ | 6,156 |  |  | $ | 28,550 |  |  | $ | (20,797) |
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS |  |  |  |  |  |  |
Weighted average number of common shares outstanding during the period | 52,810,644 |  |  | 51,358,603 |  |  | 52,323,360 |  |  | 50,746,380 |
Basic net income (loss) per share attributable to RadNet, Inc.'s common stockholders | $ | 0.31 |  |  | $ | 0.12 |  |  | $ | 0.55 |  |  | $ | (0.41) |
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS |  |  |  |  |  |  |
Weighted average number of common shares outstanding during the period | 52,810,644 |  |  | 51,358,603 |  |  | 52,323,360 |  |  | 50,746,380 |
Add nonvested restricted stock subject only to service vesting | 271,964 |  |  | 120,605 |  |  | 242,523 |  |  | — |
Add additional shares issuable upon exercise of stock options and warrants | 735,232 |  |  | 476,607 |  |  | 683,815 |  |  | — |
Weighted average number of common shares used in calculating diluted net income per share | 53,817,840 |  |  | 51,955,815 |  |  | 53,249,698 |  |  | 50,746,380 |
Diluted net income (loss) per share attributable to RadNet, Inc.'s common stockholders | $ | 0.30 |  |  | $ | 0.12 |  |  | $ | 0.54 |  |  | $ | (0.41) |
Stock options and non vested restricted awards excluded from the computation of diluted per share amounts as their effect would be antidilutive: |  |  |  |  |  |  |
Nonvested restricted stock subject to service vesting | — |  |  | — |  |  | — |  |  | 331,659 |
Shares issuable upon the exercise of stock options: | — |  |  | 48,948 |  |  | — |  |  | 933,370 |
Schedule of Investment in Joint Ventures | The following table is a summary of our investment in joint ventures during the nine months ended September 30, 2021 (in thousands):
Balance as of December 31, 2020 | $ | 34,528 |
Equity in earnings in these joint ventures | 8,259 |
Equity contributions in existing joint ventures | 1,441 |
Balance as of September 30, 2021 | $ | 44,228 |
Schedule of Joint Venture Investment and Financial Information | The following table is a summary of key balance sheet data for these joint ventures as of September 30, 2021 and December 31, 2020 and income statement data for the nine months ended September 30, 2021 and 2020 (in thousands):
Balance Sheet Data: | September 30, 2021 |  | December 31, 2020
Current assets | $ | 46,186 |  |  | $ | 27,085 |
Noncurrent assets | 67,514 |  |  | 68,686 |
Current liabilities | (12,182) |  |  | (12,545) |
Noncurrent liabilities | (20,914) |  |  | (21,582) |
Total net assets | $ | 80,604 |  |  | $ | 61,644 |
Book value of RadNet joint venture interests | $ | 36,940 |  |  | $ | 28,079 |
Cost in excess of book value of acquired joint venture interests and other | 7,288 |  |  | 6,449 |
Total value of RadNet joint venture interests | $ | 44,228 |  |  | $ | 34,528 |
Income statement data for the nine months ended September 30, | 2021 |  | 2020
Net revenue | $ | 98,193 |  |  | $ | 78,988 |
Net income | $ | 16,007 |  |  | $ | 13,651 |

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