NOTE 7 - INVESTMENT IN JOINT VENTURES

6 Months Ended

Jun. 30, 2011

Equity Method Investments Disclosure [Text Block]

NOTE 7 – INVESTMENT IN JOINT VENTURES

We have eight unconsolidated joint ventures with ownership interests ranging from 22% 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. Investment in joint ventures increased $2.5 million to $17.9 million at June 30, 2011 compared to $15.4 million at December 31, 2010. This increase is primarily related to our recording of equity earnings of $4.3 million as well as additional equity contributions of $1.5 million offset by distributions received during the six months ended June 30, 2011 of $3.9 million, of which $610,000 relates to a declared dividend distribution recorded as other receivables as of December 31, 2010.

We received management service fees from the centers underlying these joint ventures of approximately $1.7 million and $1.8 million for the three months ended June 30, 2011 and 2010, respectively, and approximately $3.4 million and $3.4 million for the six months ended June 30, 2011 and 2010 and eliminated the 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 June 30, 2011 and for the six months ended June 30, 2011 and 2010 (in thousands):

Balance Sheet Data:	June 30, 2011
Current assets	$	16,129
Noncurrent assets		25,740
Current liabilities		(7,013	)
Noncurrent liabilities		(6,766	)
Total net assets	$	28,090

Book value of Radnet joint venture interests	$	14,275
Cost in excess of book value of acquired joint venture interests		3,383
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		277
Total value of Radnet joint venture interests	$	17,935

Total book value of other joint venture partner interests	$	13,815

Income Statement Data for the six months ended June 30,		2011			2010

Net revenue	$	38,038		$	36,640
Net income	$	6,524		$	5,815

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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