Imaging services provider Alliance Imaging of Anaheim, CA, saw revenues and income fall in its second quarter (end-June 30), a development the company blamed on reimbursement reductions mandated by the Deficit Reduction Act of 2005.
For the period, Alliance posted revenue of $111.8 million, down 3.1% compared with the $115.3 million in revenue recorded in the same period of 2006. The company's net income for the most recent quarter was $4.8 million, compared with net income of $5.1 million in the second quarter of 2006.
Alliance said that in addition to the DRA, its financial numbers were negatively affected by reductions in Medicare reimbursement for PET and PET/CT procedures mandated by changes to the hospital outpatient prospective payment system (HOPPS). The DRA and HOPPS changes together are expected to result in a negative impact of $14 million on Alliance's revenue in 2007, the company said.
By AuntMinnie.com staff writers
August 3, 2007
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