Imaging center chain Medical Resources reported net service revenue of $33.5 million in its third quarter, down 10.9% from the $37.6 million posted in the same quarter last year. For the period (end-September 30), the Hackensack, NJ-based firm had a net loss of $10.5 million, compared with a net loss of $41.2 million in 1999.
The revenue decline was due to the sale or closure of 21 underperforming imaging centers during the fourth quarter of 1999 and the first nine months of 2000, according to the company. The firm also cited a decline in average reimbursement rates, largely attributable to a shift in procedure volume toward relatively low-priced managed care business.
Medical Resources has begun installing PACS and teleradiology systems in order to provide the best possible service to referring physicians and patients, according to co-COO Geoffrey Whynot. Medical Resources began offering PET services at one of its centers during the quarter, and expects to bring mobile PET services to an additional four centers in the next few months, Whynot said.
By AuntMinnie.com staff writersNovember 15, 2000
Related Reading
Dalcon, Inphact form joint venture, November 14, 2000
Medical Resources moves into red in Q2, August 15, 2000
Medical Resources revenues dip in Q1, May 16, 2000
Medical Resources net losses double, March 31, 2000
Copyright © 2000 AuntMinnie.com
