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5. INVESTMENT IN JOINT VENTURES

9 Months Ended

Sep. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

NOTE 5 – 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 nine months ended September 30, 2014 (in thousands):

Balance as of December 31, 2013	$	28,949
Equity contributions in existing joint ventures		1,161
Equity earnings in these joint ventures		4,722
Distribution of earnings		(7,358	)
Balance as of September 30, 2014	$	27,474

We earned management service fees from the centers underlying these joint ventures of approximately $2.3 million in each of the three months ended September 30, 2014 and 2013, and $6.9 million and $7.0 million for the nine months ended September 30, 2014 and 2013, respectively.

The following table is a summary of key financial data for these joint ventures as of and for the nine months ended September 30, 2014 and 2013 (in thousands):

Balance Sheet Data:	September 30, 2014
Current assets	$	14,181
Noncurrent assets		48,306
Current liabilities		(5,623	)
Noncurrent liabilities		(6,944	)
Total net assets	$	49,920
Book value of Radnet joint venture interests	$	23,232
Cost in excess of book value of acquired joint venture interests		3,857
Elimination of intercompany profit remaining on Radnet's consolidated balance sheet		385
Total value of Radnet joint venture interests	$	27,474
Total book value of other joint venture partner interests	$	26,688

Income Statement Data for the nine months ended September 30,	2014		2013
Net revenue	$	73,859	$	68,912
Net income	$	9,801	$	9,819

- 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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