Radiologix, Inc. provides diagnostic imaging services through its ownership and operation of freestanding, outpatient diagnostic imaging centers. The company uses sophisticated technology and technical expertise to perform a range of imaging procedures, such as MRI, CT, PET, nuclear medicine, ultrasound, mammography, DEXA, X-ray and fluoroscopy. At Dec. 31, 2005, Radiologix operated 492 diagnostic imaging units in 71 centers, with imaging centers located in 7 states. These include primary operations in the Mid-Atlantic; the Bay Area, California; the Treasure Coast area, Florida; Northeast, Kansas; and the Finger Lakes (Rochester) and Hudson Valley areas of New York state. The company offers multi-modality imaging services at 52 of its diagnostic imaging centers, which provide patients and referring physicians access to advanced diagnostic imaging services in one convenient location. In 2005, the company performed over 1.5 million diagnostic imaging procedures and generated service fee revenue of $251.4 million. In addition, Radiologix generated net cash flows from operating activities of $29.6 million in 2005. The company also provides administrative, management and information services to certain radiology practices that provide professional services in connection with its diagnostic imaging centers and to hospitals and radiology practices with which it operates joint ventures. The services the company provides leverage existing infrastructure and Radiologix believes improve the profitability, efficiency and effectiveness of the radiology practice or joint venture. The company operates through two segments: primary operations and Questar. Radiologix's primary operations consist of owning and operating diagnostic imaging centers and providing administrative, management and information services to the contracted radiology practice groups under long-term agreements that provide professional interpretation and supervision services in connection with the company's diagnostic imaging centers and to hospitals and radiology practices with which it operates joint ventures. The Questar subsidiary operations consist of short-term agreements with radiology practice groups. These operations have different characteristics from the company's primary operations, including location, market concentration, contracting leverage, capital requirements, the single modality nature of most of the centers and the structure of the management service agreements with physicians.
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