Q1 2025 RadNet Inc Earnings Call

May 12, 2025

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Speaker Change: I would now like to turn the conference over to Mark Stolper Chi.

Speaker Change: Financial Officer. Please go ahead Sir.

Howard Berger: The same could be true for prostate cancer, lung cancer, colorectal cancer, cardiac disease, and other metabolic conditions if and when widespread diagnostic imaging screening is adopted. RadNet is committed to leading radiology and healthcare in this direction. RadNet Feet Health, in addition to powering the EBCD program, is already offering AI interpretive solutions for prostate and lung cancer screening. Furthermore, we have been expanding the use of cardiac screening in a growing number of RadNet centers through offering coronary CT angiography, which often includes AI-powered blood flow and plaque analysis.

Thank you.

Speaker Change: Good morning, ladies and gentlemen, and thank you for joining Dr. Howard Berger and me today to discuss <unk> first quarter 2025 financial results.

Speaker Change: Before we begin today, we'd like to remind everyone of the safe Harbor statement under the private Securities Litigation Reform Act of 1095.

Speaker Change: This presentation contains forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act of $19 95.

Speaker Change: Specifically statements concerning anticipated future financial and operating performance <unk> ability to continue to grow the business by generating patient referrals and contracts with radiology practices recruiting and retaining technologists, receiving third party reimbursement for diagnostic imaging.

Howard Berger: Second, technology advances. and specifically technology advances and specifically AI. will have a transformational impact on the creation and effectiveness of diagnostic imaging-based programs. As AI becomes more widely adopted, improvements in diagnosis and operational efficiencies will help address labor challenges and make screening programs more affordable and accessible to patients and payors. AI will also be instrumental in making radiologists more productive and accurate while helping to ease the shortage of radiologists in an industry where the procedural growth will continue to accelerate. Lastly, we believe third-party payers will begin to offer reimbursement for radiology AI. Hundreds of thousands of RadNet patients, like the woman whose letter I just read, have recognized the value of AI and early detection.

Speaker Change: <unk> services <unk>.

Speaker Change: Successfully integrating acquired operations generating revenue and adjusted EBITDA for the acquired operations as estimated among others are forward looking statements within the meaning of the safe Harbor.

Speaker Change: Forward looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties, which may make radnet actual results differ materially from the statements contained herein.

Speaker Change: These risks and uncertainties include those risks set forth in Radnet reports filed with the SEC from time to time, including Radnet Annual report on Form 10-K for the year ended December 31 2024.

Speaker Change: Undue reliance should not be placed on forward looking statements, especially guidance on future financial performance, which speaks only as of the date. It is made radnet undertakes no obligation to update publicly any forward looking statements and to reflect new information events or circumstances.

Howard Berger: These patients are passionate and often outspoken. Payers have begun to take notice, and based upon constructive conversations with them, we are confident that one or more national carriers, other insurers, and self-insured employers will offer reimbursement for EBCD program as early as year end. This reimbursement event, and others like it, could mark the expansion of a new era where radiology becomes more utilized in population health screening programs. I would also be remiss if I didn't mention the continued investment to facilitate these kind of programs that we make in opening de novo centers throughout RadNet. In 2024, we opened up nine centers.

Speaker Change: After they are made or to reflect the occurrence of unanticipated events.

Dr. Berger: And with that I'd like to turn the call over to Dr. Berger.

Dr. Berger: Yes.

Dr. Berger: Thank you.

Dr. Berger: Good morning, everyone.

Dr. Berger: Thank you for joining us today.

Dr. Berger: Today's call Mark and I plan to provide you with highlights from our first quarter of 2025 results give you more insight into factors, which affected this performance and discuss our future strategy.

Operator: Good day and welcome to the RadNet Inc.

Good day and welcome to the Radnet, Inc. First quarter 2025 financial results Conference call.

Operator: first quarter 2025 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

All participants will be in listen only mode.

For our prepared remarks, we will open the call to your questions I'd like to thank all of you for joining us.

Should you need assistance. Please signal conference specialist by pressing the star followed by zero.

Howard Berger: By the end of 2025, we will have opened up 11 more new centers and are scheduled to open up an additional 11 centers in 2026.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note, today's event is being recorded.

After todays presentation, there will be an opportunity to ask questions.

Dr. Berger: Today and your interest in the net and for dedicating a portion of your day to participate in the conference calls.

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Dr. Berger: Let's begin.

Please note today's event is being recorded.

Dr. Berger: As we indicated at the end of February in conjunction with releasing our fourth quarter 2024 financial results and 2025 guidance ranges. The first quarter of 2025, specifically January and February were significantly and negatively impacted by severe weather conditions.

Howard Berger: To sum up, RadNet is well situated at the intersection of healthcare services and technology. RadNet has both, number one, the largest scale and most advanced network of national imaging centers in the United States, as well as number two, a digital health division that is advancing operational and clinical software to transform workflow at the center. Senate and corporate levels, as well as radiologist interpretation. This tech-enabled and integrated approach is unique in the diagnostic imaging industry. As we solve operational and clinical challenges in our core imaging center business, through which we have already been deploying deep health technology, in turn we are addressing the industry's core problems. As a result, RadNet is in a position to benefit both from the efficiencies and cost reductions enabled by DeepL solutions, as well as from selling and licensing these transformational solutions to others.

Operator: I would now like to turn the conference over to Mark Stolper, Chief Financial Officer. Please go ahead, sir. Thank you.

Speaker Change: I would now like to turn the conference over to Mark Stolper, Chief Financial Officer. Please go ahead Sir.

Speaker Change: Thank you.

Howard Berger: Good morning, ladies and gentlemen, and thank you for joining Dr. Howard Berger and me today to discuss RadNet's first quarter 2025 financial results.

Speaker Change: Good morning, ladies and gentlemen, and thank you for joining Doctor Howard Berger and me today to discuss Radnet first quarter 2025 financial results.

Dr. Berger: Issues in the northeast in.

Mark Stolper: Before we begin today, we'd like to remind everyone of the Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Specifically, statements concerning anticipated future financial and operating performance, RadNet's ability to continue to grow the business by generating patient referrals and contracts with radiology practices, recruiting and retaining technologists, receiving third-party reimbursement for diagnostic imaging services. Successfully integrating acquired operations, generating revenue and adjusted EBITDA for the acquired operations as estimated, among others, are forward-looking statements within the meaning of the safe harbor.

Dr. Berger: Houston, Texas as well as wildfires in southern California.

Speaker Change: Before we begin today, we'd like to remind everyone of the safe Harbor statement under the private Securities Litigation Reform Act of 1995.

Dr. Berger: At the end of February we estimated this negative impact to be approximately $22 million of revenue and $15 million of EBITDA.

Speaker Change: This presentation contains forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act of 1995.

Dr. Berger: This impact was embedded into our 2025 full year guidance released at that time.

Speaker Change: Specifically statements concerning anticipated future financial and operating performance Radnet the ability to continue to grow the business by generating patient referrals and contracts with radiology practices recruiting and retaining technologists, receiving third party reimbursement for diagnostic image.

Dr. Berger: While the impact of severe weather conditions and low.

Dr. Berger: Empires Southland fires.

Dr. Berger: Whereas expected material to the financial results in the first quarter.

Dr. Berger: I was very pleased that the business recovered to levels in March.

Speaker Change: King services success.

Dr. Berger: In the early part of May that are consistent with the strong growth trends.

Unknown Attendee: Operator, we are now ready for the... Question and answer portion of Thank you, sir.

Dr. Berger: I am pleased to report that these issues are behind us and that our business is now demonstrating the strong procedural and revenue growth trends consistent with recent performance.

Unknown Attendee: If you'd like to ask a question, please press star then one on your telephone keypad.

Mark Stolper: Forward-looking statements are based on management's current preliminary expectations and are subject to risks and uncertainties which may make RadNet's actual results differ materially from the statements contained herein. These risks and uncertainties include those risks set forth in RadNet's reports filed with the SEC from time to time, including RadNet's annual report on Form 10-K for the year ended December 31st, 2024. Undue reliance should not be placed on forward-looking statements, especially guidance on future financial performance, which speaks only as of the date it is made. RadNet undertakes no obligation to update publicly any forward-looking statements and to reflect new information, events, or circumstances after they are made, or to reflect the occurrence of unanticipated events.

Unknown Attendee: If your question has already been addressed and you'd like to remove yourself from queue, please press star then two.

Dr. Berger: There were a number of items in the quarter worth noting.

Dr. Berger: First we continue to see a gradual shift towards advanced imaging.

Brian Tanquilut: Today's first question comes from Brian Tanquilut with Jeffries. Please go ahead. Hey, good morning, guys, and congrats on the quarter. Howard, maybe just on your comment earlier, and just the strength you're seeing across advanced imaging, as we think about, you know, if you look out to the next three to five years, I mean, how do you think the growth in advanced imaging will hold? And what do you think the drivers would be for that? I mean, I guess, in just the broader context of utilization growth and the sustainability of current volume trends for your Thank you, Brian.

Dr. Berger: During this year's first quarter 'twenty six 9%.

Dr. Berger: Procedure volume was from the advanced imaging compared with 25, 7% in last years first quarter, a difference of 126 basis points.

Dr. Berger: This is both a reflection of overall industry trends as well as the significant capital investment we have made in the last few years and advanced energy equipment for growth and replacement.

Speaker Change: Undue reliance should not be placed on forward looking statements, especially guidance on future financial performance, which speaks only as of the date. It is made radnet undertakes no obligation to update publicly any forward looking statements to reflect new information events or circumstances.

Dr. Berger: Also despite the weather and fire impacts aggregate touch Cte volumes increased 22, 9% driven by the continued growth of the new prostate and brain procedures.

Howard Berger: Good morning. We certainly expect these trends to continue. The way that we are addressing the need for greater capacity is to basically utilize tools that are either AI. developed or recognizing better ways to manage our business with the new equipment that we've invested in. Both of these tools have had substantial impact in staffing the centers to accommodate the demand that we have. In most of our regions, we have backlogs that are very difficult given staffing shortages. But as we put the newer equipment in, which has shorter time slots, and as AI itself becomes more efficient, for example, with our TechLive, we expect to capture a lot of that backlog and drive revenue through that.

Speaker Change: After they are made or to reflect the occurrence of unanticipated events.

Because <unk> typically has performed to identify end stage cancer or in the case of brain studies.

Howard Berger: And with that, I'd like to turn the call over to Dr. Berger. Thank you, Mark. Good morning, everyone. Thank you for joining us today. On today's call, Mark and I plan to provide you with highlights from our first quarter 2025 results, give you more insight into factors which affected this performance, and discuss our future strategy. After our prepared remarks, we will open the call to your questions. I'd like to thank all of you for joining us today and your interest in RadNet and for dedicating a portion of your day to participate in the conference. Let's begin.

Dr. Berger: And with that I'd like to turn the call over to Dr. Berger.

Speaker Change: Yeah.

Dr. Berger: Plus correlated with Alzheimer's or dementia. These.

Speaker Change: Okay.

Speaker Change: Thank you yeah.

Dr. Berger: These studies tend to be less elective in nature and were less affected than the rest of our business by the severe winter weather and wildfires.

Speaker Change: Good morning, everyone.

Speaker Change: Thank you for joining us today.

Speaker Change: On today's call Mark and I plan to provide you with highlights from our first quarter of 2025 results give you more insight into factors, which affected this performance and discuss our future strategy.

Dr. Berger: And as a result of the operating strength, we saw in March April and the first part of May we have adjusted upwards, our 2025 revenue and adjusted EBITDA guidance ranges.

Speaker Change: Also our prepared remarks, we will open the call to your questions I'd like to thank all of you for joining us.

Dr. Berger: Despite the challenges presented by the severe weather and Flyers, we had important operating and digital health initiatives in the first quarter.

Speaker Change: Today, and your interest in Radnet and for dedicating a portion of your day to participate in the conference calls.

Speaker Change: Let's begin.

Dr. Berger: First we continue to implement the tech live remote technology solution.

Howard Berger: As we indicated at the end of February in conjunction with releasing our fourth quarter 2024 financial results. and 2025 Guidance Ranges.

Speaker Change: As we indicated at the end of February in conjunction with releasing our fourth quarter 2024 financial results and 2025 guidance range as the first quarter of 2025, specifically January and February were significantly and negatively impacted by severe weather.

Dr. Berger: Radiology technologist comprise almost 40% of our total employee base.

Howard Berger: The first quarter of 2025, specifically January and February were significantly and negatively impacted by severe weather conditions in the Northeast and Houston, Texas, as well as wildfires in Southern California. At the end of February, we estimated this negative impact to be approximately $22 million of revenue and $15 million of EBIT. This impact was embedded into our 2025 full year guidance levels released at that time. While the impact of severe weather conditions and wildland fires, southland fires were, as expected, material to the financial results of the first quarter. I was very pleased that the business recovered to levels in March, April, and the early part of May that are consistent with the strong growth trend.

Howard Berger: Additionally, AI itself will continue to increase demand. As I mentioned in my remarks, things like our EBCD program, which grew by a third comparing last year's results in the first quarter to this year's, will continue not only inside RadNet, but outside RadNet as we make this incredibly important tool available to others. That will help be facilitated by our ICAT acquisition and other AI products that we intend to offer for screening. But it's not limited just to Advanced imaging will continue to grow as newer and newer techniques, such as in cardiac imaging and CT angiography, maintain an enormously beneficial position for managing health.

Due to the continued growth of the industry wide procedural volume radiology technologists are in high demand and short supply.

Speaker Change: Additionally, in the northeast and.

Speaker Change: Houston, Texas as well as wildfires in southern California.

Dr. Berger: Challenging our ability to expand hours necessary to meet the strong demand and redness local markets and has resulted in rising labor costs.

At the end of February we estimated this negative impact to be approximately 22 million of the.

Speaker Change: $15 million of EBITDA.

Dr. Berger: As detailed.

Dr. Berger: <unk> Y mostly technology enables technologies to control equipment remotely enabling.

Speaker Change: This impact was embedded into our 'twenty to 'twenty five full year guidance that was released at that time.

Speaker Change: While the impact of severe weather conditions.

Dr. Berger: Them to cover shifts that would otherwise go on staff and in a growing number of cases, enabling technologies to control multiple scanners simultaneously.

Speaker Change: Fighters cellphone fires.

Speaker Change: Whereas expected material to the financial results of the first quarter I was very pleased that the business recovered to levels in March.

Dr. Berger: We have installed tech live on 255 of our almost 400 MRI scanners are in the process of testing capitalize on ultrasound scanners, whose effectiveness are highly dependent on the training levels and experienced technologists.

Speaker Change: Well in the early part of May that are consistent with the strong growth trends.

Howard Berger: I am pleased to report that these issues are behind us and that our business is now demonstrating the strong procedural and revenue growth trends consistent with recent There were a number of items in the quarter worth noting. First, we continue to see a gradual shift towards advanced image. During this year's first quarter, 26.9% procedural volume was from advanced imaging compared with 25.7% in last year's first quarter, a difference of 126 basis This is both a reflection of overall industry trend as well as the significant capital investment we have made in the last few years in advanced imaging equipment for growth and replacement.

Speaker Change: I am pleased to report that these issues are behind us and that our business is now demonstrating strong procedural and revenue growth trends consistent with recent performance.

Howard Berger: Cardiovascular disease is the greatest cause of death in the United States, and newer tools for treating this with medications once... risks are noticed in the patient have changed the entire cardiology business dramatically. So when you add to that the enormous growth that we're seeing in PET-CT, which has, which grew by, I think it was 22, almost 23% in a challenging first quarter to the last year to this year, we expect that growth to continue. I think we are uniquely capable of doing that because of the numerous PET-CT systems that we have across the, all of our markets, and for which we get very specialized reading capabilities to help the referring physicians have confidence in the value of these tools.

Dr. Berger: We continue to believe this technology will positively impact level revenue and lower operating costs.

Speaker Change: There were a number of items in the quarter worth noting.

Speaker Change: So as we continue to see a gradual shift towards advanced imaging.

Dr. Berger: Second the ECB digital deep health.

Speaker Change: During this year's first quarter 'twenty six 9%.

Dr. Berger: AI powered breast cancer screening program continues to grow.

Speaker Change: Procedural volume was from the advanced imaging compared with 25, 7% in last years first quarter, a difference of 126 basis points.

Dr. Berger: Notably despite the weather and some other impacts EDC adoption increased from almost $3 million in the first quarter of 2024 to slightly over $4 million in.

Speaker Change: This is both a reflection of overall industry trends as well as the significant capital investment we have made in the last few years in advanced imaging equipment for growth and replacement.

Dr. Berger: First quarter of 2025% to 33% increase.

Howard Berger: Also, despite the weather and fire impacts, aggregate PET-CT volumes increased 22.9 percent, driven by the continued growth of the newer prostate and brain procedure. Because PET-CT typically is performed to identify and stage cancer, or in the case of brain studies, to detect plaques correlated with Alzheimer's or dementia, these studies tend to be less selective in nature and were less effective than the rest of our business by the severe winter weather and wildfire.

Speaker Change: Also despite the weather and fire impacts aggregate that's C. T volumes increased 22, 1% driven by the continued growth of the new prostate and brain procedures.

Dr. Berger: Currently.

Dr. Berger: We are experiencing a blended adaption rate nationally.

Dr. Berger: <unk>.

Dr. Berger: 40%.

Dr. Berger: More cancers are being found earlier across our centers that might.

Dr. Berger: Otherwise have gone undetected and at the same time, we are making our radiologists more productive.

Speaker Change: Because <unk> typically has performed to identify end stage cancer or in the case of brain studies to detect plaques correlated with Alzheimer's or dementia.

Dr. Berger: During the first quarter, we enabled our first third party.

Howard Berger: So I see imaging, particularly for advanced imaging, being, growing at this, probably an accelerated rate, but I don't want to lose sight of the fact that routine imaging is growing rapidly also, and that will be a major focus for RadNet in the near future here to help facilitate managing that growth from an operational standpoint and improving the quality of what's done, not only in outpatient imaging centers, but the other imaging providers that are not necessarily steeped in radiology as part of their provider responsibility. Now that makes sense.

<unk> customer.

Speaker Change: These studies tend to be less elective in nature and were less affected than the rest of our business by the severe winter weather and wildfires.

Dr. Berger: Ob Gyn socialist of the Palm beaches, with the technology and interpreted services to offer AI enhanced breast screening.

Howard Berger: As a result of the operating strength we saw in March, April, and the first part of May, we have adjusted upwards our 2025 revenue and adjusted EBITDA guidance range. Despite the challenges presented by the severe weather and fires, we advanced important operating and digital health initiatives in the first quarter. First, we continue to implement the TechLive Remote Technologist Solution. Radiology technologies comprise almost 40% of our total employee base. Due to the continuing growth of the industry-wide procedural volume, radiology technologists are in high demand and short supply. challenging our ability to expand hours necessary to meet this strong demand in RadNet's local markets and has resulted in rising labor costs.

Speaker Change: As a result of the operating strength, we saw in March April and the first part of May we have adjusted upwards of 2025 revenue and adjusted EBITDA guidance ranges.

Dr. Berger: To its patients.

Dr. Berger: We began the specialist services nearly 6000 women across 10 locations in South East, Florida and is now offering state of the art mammography and breast cancer screening.

Speaker Change: Despite the challenges presented by the severe weather and fires, we had important operating and digital health initiatives in the first quarter.

Dr. Berger: Inclusive of ABCD and expert radiologists interpretation.

Dr. Berger: At the current time.

Speaker Change: First we continue to implement the tech live remote technologists solution.

Dr. Berger: Over 50% of the Ob Gyn specialists patients.

Speaker Change: Realogy technologists comprise almost 40% of our total employee base.

Dr. Berger: Are adopting.

Mark Stolper: And maybe Mark, just shifting gears a little bit here, as I think about, you know, JVs and M&A, just curious what you can share with us in terms of your pipeline and where you think you could take a M&A deal flow over the next 12 to 18 months?

Dr. Berger: <unk> as part of their mammography screening.

Dr. Berger: As part of the collaboration revenues contracted board certified breast imaging radiologists are providing interpretation of all mammography and diagnostic screening exams.

Speaker Change: Due to the continued growth of the.

Industry wide procedural volume radiology technologist are in high demand and short supply.

Howard Berger: I'm going to hijack that question, Brian, from Mark, since I'm a little bit closer to it than Mark is. The pipeline is very robust. We don't go out looking necessarily for customers. We need customers or clients, potential clients, that recognize the need that they have for radiology solutions. And that includes both operating the opportunities for the demand that they have, as well as giving them an education to know how the impact of AI and IT solutions can positively improve the delivery of healthcare. We have gotten a number of calls, which we are having discussions with hospitals that we currently have joint ventures with, but I'm happy to say several that we do not, that recognize the value proposition that RadNet has in transforming their radiology delivery.

Speaker Change: <unk> ability to expand hours necessary to meet the strong demand in red in its local markets and has resulted in rising labor costs.

Dr. Berger: <unk> across obgyn specialist locations.

Dr. Berger: At this point of care model is a new growth opportunity for <unk>.

Dr. Berger: Radnet and details offerings not just in mammography, but also in the areas of X-ray ultrasound deep.

Howard Berger: Deep Health Tech Live Remote Scanning Technology enables technologists to control equipment remotely, enabling them to cover shifts that would otherwise go unstaffed, and in a growing number of cases, enabling technologists to control multiple scanners simultaneously. We have installed TechLive on 255 of our almost 400 MRI scanners are in the process of testing TechLive on ultrasound scanners, whose effectiveness are highly dependent on the training levels and experience of technology. We continue to believe this technology will positively impact revenue and lower operating costs. Second, the EVCD Digital Deep Health. AI Powered Risk Cancer Screening Program continues to grow.

The detailed tech lies mostly technology enables technologies to control equipment remotely enabling.

Dr. Berger: <unk> is working closely with various equipment manufacturers to develop technology that can further in April.

Speaker Change: Yeah in Chicago shifts that would otherwise go on staff and in a growing number of cases, enabling technologies to control multiple scanners simultaneously.

Dr. Berger: Routine imaging.

Dr. Berger: More accessible to patients.

Dr. Berger: Subsequent to the quarter.

Dr. Berger: Quarter end on April 15th we announced the acquisition.

We have installed take like 255 of our almost 400 MRI scanners are in the process of testing Tech life on ultrasound scanners, whose effectiveness are highly dependent on the training levels and experienced a technologist.

Dr. Berger: And signing of a definitive agreement of <unk>, Inc. A global leader in providing clinically proven AI powered breast health solutions Ikea.

Dr. Berger: <unk> profiling breast health suite and then its details.

Dr. Berger: AI powered gross giving solutions together have the ability to materially expand and improve patient diagnosis and outcomes on a global basis.

Speaker Change: We continue to believe this technology will positively impact revenue.

Speaker Change: Revenue and lower operating costs.

Speaker Change: Second the ECB digital deep health.

Dr. Berger: Through further enabling accuracy and early detection.

Dr. Berger: With over 1500 healthcare provider locations.

Speaker Change: AI powered breast cancer screening program continues to grow.

Howard Berger: Notably, despite the weather and fire impacts, EBCD adoption increased from almost $3 million in the first quarter of 2024 to slightly over $4 million in the first quarter of 2025, a 33% increase. Currently, we are experiencing a blended adoption rate nationally of over 40%. more cancers are being found earlier across our centers that might otherwise have gone undetected. And at the same time, we are making our radiologists more During the first quarter, we enabled our first third-party EBCD customer. OB-GYN specialist of the Palm Beaches with the technology and interpretive services to offer AI enhanced breast screening to its patients.

Dr. Berger: And.

Speaker Change: Notably despite the weather.

Facilitating over $8 million annual mammograms at 50 country.

Howard Berger: And I really want to emphasize that because hospitals are having the same kind of problems inside their four walls with radiology staffing, both on the physician side as well as the technologist side. So what we're experiencing and other of the outpatient imaging centers are experiencing the way of challenging labor demands is the same thing that hospitals are having, despite the fact that they offer substantially higher compensation to their employees. So these kinds of solutions are the future, and I believe every hospital system at some point will be adopting some form of IT and AI solutions as a part of their delivery.

Speaker Change: It impacts E D. C D adoption increased from almost $3 million in the first quarter of 'twenty 'twenty four to slightly over $1 million.

Dr. Berger: <unk> installed base and strong sales engineering and marketing capabilities will provide us with immediate broad and valuable customer relationships and commercialization capabilities that can celebrate existing details opportunities.

Speaker Change: Yeah.

Speaker Change: First quarter of 2025, and 33% increase.

Speaker Change: Currently we are experiencing a blended adaption rate nationally.

Dr. Berger: With this business combination, we hope to accelerate our global leadership in and commitment to AI.

Speaker Change: Over.

Dr. Berger: AI powered breast cancer screening and position us to further advance population health.

Speaker Change: 40%.

Speaker Change: More cancers are being found earlier across our centers that might otherwise have gone undetected and at the same time, we are making our radiologists more productive.

Dr. Berger: The transaction is expected to close in the second quarter or early part of the third quarter of 220 drive is subject to approval by Ikea shareholders stockholders and other customary closing conditions.

Speaker Change: During the first quarter, we enabled our first third party E B C D customer.

Speaker Change: Ob Gyn socialist of the palm beaches, with the technology and interpreted services to offer.

Dr. Berger: We continue to grow our hospital and health system joint venture business.

Howard Berger: This is a strategic strategy that not only is a necessity for them but probably existential if they're going to continue to try to capture all of the downstream opportunities that screening technologies and AI are capable of delivering. So I think I've said before in the past, Brian, that I'd like to have all 400 of our centers in joint ventures with hospitals. I think the currently 40% of our centers that we have, almost 160, are performing exceptionally well and I believe indicate how strong that model is and when other systems see that and talk to our partners, they quickly determine that RadNet has the tools to help make this a heavy lift and transformational requirement.

Dr. Berger: 154 of our centers are held within system partnerships. This.

Speaker Change: And spreads screening.

Speaker Change: Two it's patients.

Howard Berger: Ob-gyn specialist services nearly 60,000 women across 10 locations in Southeast Florida and is now offering state-of-the-art mammography and breast cancer screening. inclusive of EBCD and expert radiologist interpretation. At the current time, over 50% of the OB-GYN specialist patients are adopting EBCD as part of their mammography screening. As part of the collaboration, RadNet's contracted board-certified breast imaging radiologists are providing interpretation of all mammography and diagnostic screening exams. conducted across OBGYN specialist locations. This point-of-care model is a new growth opportunity for RadNet and in deep health offerings, not just in mammography, but also in the areas of x-ray and ultrasound.

Speaker Change: Ob Gyn specialist services nearly 6000 women across 10 locations in South East, Florida and is now offering state of the art and the other three in breast cancer screening.

Dr. Berger: This includes two de novo facilities, which we opened in the first quarter.

Dr. Berger: Inside of the New Jersey imaging network joint venture with <unk>.

Dr. Berger: Our WJ Barnabas health system, we anticipate both establishing new joint ventures with other health systems as well as expanding existing partnerships during the remainder of 2025.

Speaker Change: Inclusive of a B C D and expert radiologists interpretation.

The current time.

Speaker Change: 50% of the Ob Gyn specialists patients.

Health systems continue to seek solutions for long term strategies around outpatient imaging and have recognized at cost effective freestanding centers will continue to capture market share from hospitals as payers and patients migrate to a same site of care.

Speaker Change: Are adopting.

Speaker Change: B C D as part of their mammography screening.

Speaker Change: As part of the collaboration we had and its contracted board certified breast imaging radiologists are providing interpretation of all mammography and diagnostic screening exams.

Dr. Berger: Two lower cost high quality solutions.

Dr. Berger: Finally, we continued to have strong liquidity and modest financial leverage we ended the first quarter with a cash balance of 17 of $717 million and a net debt to adjusted EBITDA ratio of slightly more than one.

Speaker Change: Data across Ob Gyn specialist locations.

Speaker Change: This point of care model is a new growth opportunity for Radnet.

Speaker Change: Details offerings not just in mammography, but also in the areas of X-ray ultrasound deep.

Unknown Attendee: Appreciate it.

Unknown Attendee: Thank you, Howard.

Unknown Attendee: Thanks, guys.

David MacDonald: And our next question today comes from David MacDonald with Chula Securities. Please go ahead. Hey, guys, this is actually Grayson McAllister on for Dave this morning, just wanted to follow up on the labor front. I know you guys talked about some improvement in the first quarter, but wanted to check specifically on technologist hiring trends. And last quarter, I think you talked about a $45 million headwind from SWMB. I just want to see if we're still on track for that. Okay, yeah, there's about $45 million of additional kind of same center labor cost increases built into our 2025 guidance.

Howard Berger: Deep Health is working closely with various equipment manufacturers to develop technology that can further enable Routine Imaging More Accessible to Patients.

Speaker Change: Keep houses working closely with various equipment manufacturers to develop technology that can further enable.

Dr. Berger: We have an active pipeline of acquisitions, which we are evaluating both for our core imaging Center division as well as for the digital Health Division and we are confident we were able to invest our cash balance overtime and opportunities that advance read dense strategic objectives.

Speaker Change: Routine imaging.

Speaker Change: <unk> accessible to patients.

Howard Berger: Subsequent to the quarter end on April 15, we announced the acquisition. and signing of a definitive agreement of ICAD, Inc., a global leader in providing clinically proven AI-powered breast health solutions. ICAD's Profound Breast Health Suite and RadNet's DeepHealth AI-powered breast scanning solutions together have the ability to materially expand and improve patient diagnosis and outcomes on a global basis. through further enabling accuracy and early detection. with over 1,500 healthcare provider locations. and facilitating over 8 million annual mammograms in 50 countries. ICAD's installed base and strong sales, engineering, and marketing capabilities will provide us with immediate, broad, and valuable customer relationships and commercialization capabilities that can celebrate existing deep health opportunities.

Speaker Change: Subsequent to the quarter end on April 15th we announced the acquisition.

Speaker Change: And signing of a definitive agreement of ICANN, Inc. A global leader in providing clinically proven AI powered breast health solutions.

Mark: At this time I'd like to turn the call back over to Mark to discuss some of the highlights of our first quarter 2025 performance.

Speaker Change: I catch profound breast health suite and then its details.

Dr. Berger: Fishing.

Dr. Berger: Finished I will make some closing remarks.

Speaker Change: Tolerable scanning solutions together have the ability to materially expand and improve patient diagnosis and outcomes on a global basis.

Dr. Berger: Thank you Howard.

Dr. Berger: Im now going to briefly review, our first quarter 2025 performance and attempt to highlight what I believe to be some material items I will also give some further explanation of certain items in our financial statements as well as provide some insight into some of the metrics that drove our first quarter performance.

Mark Stolper: Grayson, yeah, that's that's still on track, this, you know, in terms of, you know, it's still built into our budget, we are seeing some improvement on the hiring side, the availability of technologists, which is our biggest pain point, which is alleviating some of the financial burden that we've been expending with outside staffing companies. So I think at this point, we're still comfortable with $45 million of additional labor expenses that we built into the budget. Okay, awesome.

Speaker Change: Through further enabling accuracy and early detection.

Speaker Change: With over 1500 health care provider locations.

Speaker Change: And in facilitating over 8 million annual Mammogram 50 country, I kids installed base and strong sales engineering and marketing campaign.

We'll also provide an update to 2025 financial guidance levels, which were released in conjunction with our 2024 year end results in February.

Speaker Change: These will provide us with immediate blood and valuable customer relationships and commercialization capabilities that can celebrate existing details opportunities.

Dr. Berger: In my discussion I will use the term adjusted EBITDA, which is a non-GAAP financial measure the company defines adjusted EBITDA as earnings before interest taxes, depreciation and amortization and excludes losses or gains on the disposal of equipment other income or loss loss on debt extinguishment and not.

Howard Berger: With this business combination, we hope to accelerate our global leadership in and commitment to AI-powered breast cancer screening and position us to further advance population health.

Speaker Change: With this business combination, we hope to accelerate our global leadership in and commitment to AI.

Howard Berger: And just sticking with labor, obviously, still early in the tech live rollout, but I just wanted to see if you could talk about how the rollout has went so far, and then just saying nursing leverage that you've seen, you know, through the rollout thus far. Thanks. As I mentioned, we have 265 of our... sorry, over 400 MRI centers on both the East and West Coast. And the reception of this by the technologists as well as the managers in all of the centers has been overwhelmingly positive. There's two reasons for that. Number one, the Oversight by technologists, MRI technologists in particular, that can allow faster and more accurate scanning has already been seen.

Speaker Change: AI powered breast cancer screening and position us to further advance population health.

Howard Berger: The transaction, expected to close in the second quarter or early part of the third quarter of 2025, is subject to approval by ICAT shareholders, stockholders, and other customary closing conditions.

Dr. Berger: Noncash equity compensation.

Speaker Change: The transaction is expected to close in May.

Dr. Berger: Adjusted EBITDA includes equity earnings in unconsolidated operations and subtract allocations of earnings to Noncontrolling interests in subsidiaries and is adjusted for noncash or extraordinary and onetime events taken place during the period.

Speaker Change: The second quarter or early part of the third quarter of 2020 drive is subject to the approval by Ikea shareholders stockholders and other customary closing conditions.

Howard Berger: We continue to grow our hospital and health system joint venture business. Currently, 154 of our centers are held within system partnership. This includes two de novo facilities which we opened in the first quarter inside of the New Jersey Imaging Network Joint Venture with the RWJ Barnabas Health System.

Speaker Change: We continue to grow our hospital and health system joint venture business.

Dr. Berger: A full quantitative reconciliation of adjusted EBITDA to net income or loss attributable to Radnet, Inc. Common shareholders is included in our earnings release.

Speaker Change: Currently 154 of our centers are held within system partnerships. This includes children all those facilities, which we opened in the first quarter.

Dr. Berger: With that said I'd.

Dr. Berger: Now I'd like to review, our first quarter 2025 results.

Speaker Change: Inside of the New Jersey imaging network joint venture with our WJ Barnabas Health system, we anticipate both establishing new joint ventures with other health systems as well as expanding existing partnerships during the remainder of 2025.

Speaker Change: As Dr. Berger highlighted in his prepared remarks, the first quarter was marred by the severe winter weather conditions in the northeast and the California wildfires significantly distorting any meaningful comparison to last year's first quarter results.

Howard Berger: We anticipate both establishing new joint ventures with other health systems as well as expanding existing partnerships during the remainder of 2025. Health systems continue to seek solutions for long-term strategies around outpatient imaging and have recognized that cost-effective freestanding centers will continue to capture market share from hospitals as payers and patients migrate to the site of care.

Howard Berger: And so in some of the centers where the TechLive is operational, we've been able to manage the local MRI from a staffing standpoint. to open for the hours that we want. And a tech aide who has been trained on safety and other tools to manage these patients, along with the remote tech using TechLive, has been instrumental in helping drive the revenue opportunities that MRI somewhat uniquely has for us, given the high demand and the need to open for more and more capacity. So what we expect is over a period of time between now and the end of the year to have all 400 centers on our TechLive, and that will allow us to reduce some of the outside staffing that we have been forced to use now for the last year and a half since this trend has become really ingrained in the imaging world, if you will, not just for us, but everybody.

Speaker Change: Health systems continue to seek solutions for long term strategies around outpatient imaging and have recognized the cost of the freestanding centers will continue to capture market share from hospitals and payers and patients migrate to their same site of care.

Speaker Change: These extraordinary events, where we're fortunately confined to January and February as our business bounced back nicely in March and revenue in procedure volumes have been strong sense.

Howard Berger: to roll across high-quality solutions. Finally, we continue to have strong liquidity and modest financial leverage. We ended the first quarter with a cash balance of $717 million and a net debt to adjusted EBITDA ratio of slightly more than one.

Speaker Change: While I won't recap all the financial information that is contained in yesterday's earnings report care some of the highlights.

Speaker Change: Two lower cost high quality solutions.

Speaker Change: Finally, we continued to have strong liquidity and modest financial leverage we ended the first quarter with a cash balance of 17 of $717 million and a net debt to adjusted EBITDA ratio of slightly more than one.

Speaker Change: For the first quarter of 2025, Radnet reported total company revenue of $471 4 million and adjusted EBITDA of $46 4 million.

Speaker Change: Revenue increased $39 7 million or nine 2% and adjusted EBITDA decreased $12 $1 million or 26% as compared with the first quarter of 2024.

Howard Berger: We have an active pipeline of acquisitions, which we are evaluating both for our core imaging center division, as well as for the digital health division. And we are confident we were able to invest our cash balance over time in opportunities that advance RAD's strategic objectives.

We have an active pipeline of acquisitions, which we are evaluating both for our core imaging Center division as well as for the digital Health Division and we are confident we were able to invest our cash balance overtime and opportunities that advance their debts strategic objectives.

Speaker Change: Adding back the estimated $22 million impact from the wet weather and fires to revenue in the first quarter of 2025 revenue would have increased 414, 3% from last year's first quarter.

Mark Stolper: At this time, I'd like to turn the call back over to Mark to discuss some of the highlights of our first quarter 2025 performance. When he is finished, I will make some closing remarks. Thank you, Howard. I'm now going to briefly review our first quarter 2025 performance and attempt to highlight what I believe to be some material items. I will also give some further explanation of certain items in our financial statements as well as provide some insight into some of the metrics that drove our first quarter performance. We'll also provide an update to 2025 financial guidance levels, which were released in conjunction with our 2024 year-end results in February.

At this time I'd like to turn the call back over to Mark to discuss some of the highlights of our first quarter 2025 performance.

Speaker Change: Fishing when he's finished I will make some closing remarks.

Speaker Change: And adding back the estimated $15 million impact from the weather and the fires on adjusted EBITDA for the first quarter of 2025, adjusted EBITDA would have increased 5% from last year's first quarter.

Howard Berger: So that part of it might help mitigate some of that $45 million, but we might not see that until late this year or more likely in 2026. That aside, we are now seeing, I believe, a better environment for hiring. Our hiring has been facilitated both by some educational programs that we use to train for our non-technologist staff that we've been doing in conjunction with local organizations for the last year or so, and we are expanding that to include technologists first in areas like for DEXA scanning, but we're also looking to do that in radiology and MRI.

Speaker Change: Thank you Howard.

Speaker Change: I'm now going to briefly review, our first quarter 2025 performance and attempt to highlight what I believe to be some material items I will also give some further explanation of certain items in our financial statements as well as provide some insight into some of the metrics that drove our first quarter performance.

Speaker Change: As a reminder, in general the first quarter from a seasonality perspective is always our most challenged quarter. Among other things. This is due to increased payroll taxes. The expense of the expensing of employee bonuses, the frontloading of our capital expenditure budget and lower health care <unk>.

Speaker Change: I will also provide an update to 2025 financial guidance levels, which were released in conjunction with our 2024 year end results in February.

Speaker Change: Utilization in general as a result of the annual reset of deductibles.

Mark Stolper: In my discussion, I will use the term adjusted EBITDA, which is a non-GAAP financial measure. The company defines adjusted EBITDA as earnings before interest, taxes, depreciation, and amortization and excludes losses or gains on the disposal of equipment, other income or loss, loss on debt extinguishments, and non-cash equity compensation. Adjusted EBITDA includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries and is adjusted for non-cash or extraordinary and one-time events taking place during the period. A full quantitative reconciliation of adjusted EBITDA to net income or loss attributable to RadNet Inc.

Speaker Change: In my discussion I will use the term adjusted EBITDA, which is a non-GAAP financial measure the company defines adjusted EBITDA as earnings before interest taxes, depreciation and amortization and excludes losses or gains on the disposal of equipment other income or loss loss on debt extinguishment and no.

Speaker Change: The digital health segment reported revenue of $19 $2 million and adjusted EBITDA of $3 $7 million in the first quarter.

Speaker Change: Revenue increased $3 6 million or 31, 1% and adjusted EBITDA increased $191000 or five 4% as compared with the first quarter of 2024.

Speaker Change: Noncash equity compensation.

Howard Berger: And so. The people are gravitating towards programs that will allow us to bring newer employees into the RadNet operations, but also I believe with AI and other technology tools that we're using, some of the available technologies out there are starting to prefer job opportunities inside of RadNet. So I believe on both the East and West Coast, we're starting to see somewhat of a loosening of the difficulty that we've had in staffing, and I expect that to improve throughout the year, but be a little bit more something that we can quantify as we get past the fourth quarter of this year.

Speaker Change: Adjusted EBITDA includes equity earnings in unconsolidated operations and subtract allocations of earnings to Noncontrolling interests in subsidiaries and is adjusted for noncash or extraordinary and onetime events taken place during the period.

Speaker Change: Digital health growth was driven by 33, 3% growth in AI revenue, mainly as a result of the improved adoption of ABCD and 31% growth in radiology software, mainly from more intercompany revenue driven by aggregate procedural volume growth in <unk> core.

Speaker Change: A full quantitative reconciliation of adjusted EBITDA to net income or loss attributable to Radnet, Inc. Common shareholders is included in our earnings release.

Mark Stolper: common shareholders is included in our earnings release.

Speaker Change: Imaging centers.

Speaker Change: We finished the first quarter of 2025 with a strong cash and liquidity position.

Mark Stolper: With that said, I'd now like to review our first quarter 2025 results. As Dr. Berger highlighted in his prepared remarks, the first quarter was marred by the severe winter weather conditions in the Northeast and the California wildfires, significantly distorting any meaningful comparison to last year's first quarter results. These extraordinary events were fortunately confined to January and February, as our business bounced back nicely in March, and revenue and procedure volumes have been strong since. While I won't recap all the financial information that's contained in yesterday's earnings report, here are some of the highlights. For the first quarter of 2025, RadNet reported total company revenue of $471.4 million and adjusted EBITDA of $46.4 million.

Speaker Change: With that said I'd now like to review, our first quarter 2025 results.

Speaker Change: At quarter end, we had $717 million of cash on the balance sheet full availability of $282 million revolving credit facility and a term loan that is priced at so for plus $2 25 basis points reflective of the refinancing transaction, we completed last April and the repricing.

Howard Berger: So for the current time, I'm very comfortable that we have that built into our 2025 performance, but expect all of the... tools and methods that we're using for staffing and operating our centers will be highly effective in the second half of this year and certainly into 2025.

Speaker Change: These extraordinary events, where for it we're fortunately confined to January and February as our business bounced back nicely in March and revenue in procedure volumes have been strong since.

Speaker Change: And we completed in November.

Speaker Change: Continued improvement in revenue cycle has kept our dsos or days sales outstanding at 33, three days slightly lower than where we were at this time last year.

Speaker Change: While I won't recap all the financial information that is contained in yesterday's earnings report here some of the highlights.

Speaker Change: With regards to our financial leverage as of March 31, 2025, unadjusted for bond and term loan discounts, we had $285 5 million of net debt, which is our total debt at par value less our cash balance.

Howard Berger: I should also say that we're beginning to implement virtually all of the modules for our deep health operating system inside of RadNet centers on a pilot basis and it will affect everything that we do from our contact centers, scheduling, reimbursement operations. kiosks at our centers for faster and more accurate a presentation of the patients for their scans, insurance verification, and we expect to have large parts of this operational by year-end and look forward to giving you more specifics on the impact that that will have. But again, this is all part of a transformational effort that we are making that I believe will be something that virtually anybody who performs diagnostic imaging procedures will need to have or want to have in one form or another.

Speaker Change: For the first quarter of 2025, Radnet reported total company revenue of 471 $4 million and adjusted EBITDA of $46 $4 million.

Mark Stolper: Revenue increased $39.7 million or 9.2% and adjusted EBITDA decreased $12.1 million or 20.6% as compared with the first quarter of 2024. Adding back the estimated $22 million impact from the weather and fires to revenue in the first quarter of 2025, revenue would have increased 14.3% from last year's first quarter. And adding back the estimated $15 million impact from the weather and the fires on adjusted EBITDA for the first quarter of 2025, adjusted EBITDA would have increased 5% from last year's first quarter. As a reminder, in general, the first quarter, from a seasonality perspective, is always our most challenged quarter.

Speaker Change: Note that this debt balance includes radnet ownership percentage of New Jersey imaging network net debt of $39 9 million for which Radnet is neither a borrower nor guarantor.

Speaker Change: Revenue increased $39 $7 million or nine, 2% and adjusted EBITDA decreased $12 $1 million or 26% as compared with the first quarter of 2024.

Speaker Change: At quarter end, our net debt to adjusted EBITDA leverage ratio was slightly more than one times.

Speaker Change: Given the positive trends, we experienced in March April and the first part of May we elected to increase revenue and adjusted EBITDA guidance ranges for our imaging center business we.

Speaker Change: We increased revenue by $10 million at the low and high ends of the guidance ranges and increased adjusted EBITDA by $3 million at both the low and high ends of the range.

Speaker Change: As a reminder, in general the first quarter from a seasonality perspective. It is always our most challenged quarter. Among other things. This is due to increased payroll taxes. The expense of import the expensing of employee bonuses, the frontloading of our capital expenditure budget and lower health care use.

Speaker Change: We also increased our capital expenditure budget guidance ranges by $5 million.

Mark Stolper: Among other things, this is due to increased payroll taxes, the expensing of employee bonuses, the frontloading of our capital expenditure budget, and lower healthcare utilization in general as a result of the annual reset of deductible.

Speaker Change: Otherwise all guidance ranges for both the imaging center and the digital health segments remain unchanged.

Unknown Attendee: Great. Thanks, Howard. Thank you.

Speaker Change: With respect to Medicare reimbursement for 2026, there is nothing to report at this time as is typical each year. We are we are expecting CMS to release, a preliminary rate schedule sometime in June or July at which time, we will annualize cms's proposal and are in.

Andrew Mok: And our next question today comes from Andrew Mok of Barclays. Please go ahead. Hi, good morning. Despite the weather and volume headwinds, revenue still finished six and a half percent above consensus. How did revenue, you know, perform against your own internal expectations in the quarter? And can you comment on why there wasn't a higher earnings conversion on that, you know, perceived revenue beat? Thanks. Sure. So if you add back the $22 million of revenue we lost due to the fires and due to the severe winter weather conditions in the Northeast and the Mid-Atlantic, our revenue was strong and was in line with our internal guidance or budget.

<unk> in general as a result of the annual reset of deductibles.

Mark Stolper: The digital health segment reported revenue of $19.2 million and adjusted EBITDA of $3.7 million in the first quarter. Revenue increased $3.6 million, or 31.1%, and adjusted EBITDA increased $191,000, or 5.4%, as compared with the first quarter of 2024. Digital health growth was driven by 33.3% growth in AI revenue, mainly as a result of the improved adoption of EBCD, and 30.1% growth in radiology software, mainly from more intercompany revenue driven by aggregate procedural volume growth in RadNet's core imaging set.

Speaker Change: The digital health segment reported revenue of $19 $2 million and adjusted EBITDA of $3 $7 million in the first quarter.

Speaker Change: Industry associations and lobbying groups will provide CMS, our industry's feedback at.

Speaker Change: Revenue increased $3 $6 million or 31, 1% and adjusted EBITDA increased $191000 or five 4% as compared with the first quarter of 2024.

Speaker Change: At the time of our second quarter financial results call in August we will be in a position to comment on Cms's proposal and its impact if any upon radnet future results.

Speaker Change: Digital health growth was driven by 33, 3% growth in AI revenue, mainly as a result of the improved adoption of E. B C D and 31% growth in radiology software, mainly from more intercompany revenue driven by aggregate procedural volume growth in Radnet score.

Speaker Change: I would now like to turn the call back over to Dr. Berger, who will make some closing remarks.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Thank you Mark.

Mark Stolper: We did see that these impacts really were felt in January and February. March, the business bounced back very nicely. We didn't have any weather issues. The displaced populations in Southern California, both in the west side of LA and in the Pasadena, Pasadena area, that stabilized. People began using health care services, and utilization looked more normal after that. And we've had a strong April and strong May. So that's what's given us the confidence to increase our budget, both on the revenue and the EBITDA side for the up to this first quarter and feel good about the rest of the year.

Speaker Change: I'd like to take a moment and reconnection.

Speaker Change: The letter we received from a patient who recently visited one of our New York Lenox Hill radiology locations for her annual screening mammography exam.

Speaker Change: Imaging centers.

Mark Stolper: We finished the first quarter of 2025 with a strong cash and liquidity position. At quarter end, we had $717 million of cash on the balance sheet, full availability of a $282 million revolving credit facility, and a term loan that is priced at SOFR plus 225 basis points, reflective of the refinancing transaction we completed last April and the repricing transaction we completed in November. Continued improvement in revenue cycle has kept our DSOs, or Days Sales Outstanding, at 33.3 days, slightly lower than where we were at this time last year. With regards to our financial leverage, as of March 31, 2025, unadjusted for bond and term loan discounts, we had $285.5 million of net debt, which is our total debt at par value less our cash balance.

Speaker Change: We finished the first quarter of 2025 with a strong cash and liquidity position.

Speaker Change: It reads as follows.

Speaker Change: At quarter end, we had $717 million of cash on the balance sheet full availability of 282 million dollar revolving credit facility and a term loan that is priced at so for plus 225 basis points reflective of the refinancing transaction, we completed last April and the repricing transact.

Speaker Change: A few weeks ago, I had a routine mammogram and sonogram as part of our regular health checkup.

Speaker Change: I would advise they have AI software assists with the exam.

Speaker Change: The results revealed something that had not been detectable previously.

Speaker Change: Following the findings I completed a biopsy and another of Radnet facilities in New York and the results confirmed a diagnosis of stage zero breast cancer without the software the cancer Might've gone undetected until much later.

Speaker Change: And we completed in November.

Speaker Change: Continued improvement in revenue cycle has kept our dsos or days sales outstanding at 33, three days slightly lower than where we were at this time last year.

Speaker Change: Yesterday, I underwent surgery and I'm relieved to share that the procedure went well and I am now on the road to recovery. While this journey has been unexpected and challenge and I am incredibly grateful for the power of <unk> technology without it.

Speaker Change: With regards to our financial leverage as of March 31, 2025, unadjusted for bond and term loan discounts, we had $285 $5 million of net debt, which is our total debt at par value less our cash balance.

Mark Stolper: In terms of the profitability of the first quarter, first quarter is always our most challenged quarter for a number of reasons. First, like other health care services companies, we suffer from the fact that deductibles reset, annual deductibles reset, and there's just less utilization here in the first quarter or the beginning parts of every year in terms of health care. Second, we've got some expenses in the first quarter that typically we don't have in the rest of the year, the acceleration of the payroll taxes that we pay until the highly compensated folks max out. We have challenges related to the way we expense our bonuses from the prior year hit the first quarter.

Speaker Change: Diagnosis may have been delayed, possibly leading to more complex treatment.

Mark Stolper: Note that this debt balance includes RadNet's ownership percentage of New Jersey Imaging Network's net debt of $39.9 million, for which RadNet is neither a borrower nor guarantor. At quarter ends, our net debt to adjusted EBITDA leverage ratio was slightly more than one time. Given the positive trends we experienced in March, April, and the first part of May, we elected to increase revenue and adjusted EBITDA guidance ranges for our Imaging Center business. We increased revenue by $10 million at the low and high ends of the guidance ranges and increased adjusted EBITDA by $3 million at both the low and high ends of the range.

Speaker Change: Note that this debt balance includes radnet ownership percentage of New Jersey imaging network net debt of $39 $9 million for which Radnet is neither a borrower nor guarantor.

I share My story is a testament to the importance of medical screening.

Speaker Change: Early detection saves lives and I am living proof of that.

Speaker Change: At quarter end, our net debt to adjusted EBITDA leverage ratio was slightly more than one times.

Speaker Change: To anyone really is if you have the opportunity to get enhanced detection take it it could make a difference.

Speaker Change: This patient letter highlighted several points that I would like to emphasize.

Speaker Change: First in the coming years diagnostic imaging will shift towards earlier detection preventative maintenance and population health management.

Speaker Change: We increased revenue by $10 million at the low and high ends of the guidance ranges and increased adjusted EBITDA by $3 million at both the low and high ends up the range.

Speaker Change: Currently the vast majority of diagnostic imaging was performed on patients who present with symptoms illness or injury.

Mark Stolper: And then in general, we front load our CapEx budget, so our DSOs lengthen slightly in the first quarter due to the reset of deductibles.

Mark Stolper: We also increased our capital expenditure budget guidance ranges by $5 million. Otherwise, all guidance ranges for both the Imaging Center and the digital health segments remain unchanged.

Speaker Change: We also increased our capital expenditure budget guidance ranges by $5 million otherwise.

Speaker Change: While there is tremendous value proposition in servicing these individuals' health care can be dramatically improved by screening non symptomatic patient populations cost effectively for some of the most common diseases, which are responsible for the rising cost of healthcare delivery.

Speaker Change: Otherwise all guidance ranges for both the imaging center and the digital health segments.

Howard Berger: Let me add to Mark's comments. I think some of the growth also is coming from the nine new centers that we opened in 2024. Those de novo centers . . take some time to ramp up. And by 2025, since they will open throughout the year, I believe we're seeing some of that impact. And the reason I'm mentioning that is that we're developing 11 more centers here in 2025, of which I believe less than five of them have opened so far, maybe only three have opened so far in 2025. So we have eight more centers that will continue or contribute to revenue growth slated for this year, and then 11 more for next year, which are in the early stages of development.

Speaker Change: Main unchanged.

Mark Stolper: With respect to Medicare reimbursement for 2026, there is nothing to report at this time. As is typical each year, we are expecting CMS to release a preliminary rate schedule sometime in June or July, at which time we will analyze CMS's proposal and our industry's associations and lobbying groups will provide CMS our industry's feedback. At the time of our second quarter financial results call in August, we will be in a position to comment on CMS's proposal and its impact, if any, upon RadNet's future results.

Speaker Change: Breast cancer exemplifies the potential for population health management, where annual screens for women's starting at the age of 40 has greatly improved women's health.

Speaker Change: Same could be true for prostate cancer lung cancer, colorectal cancer cardiovascular disease, and other metabolic conditions, if and when widespread diagnostic imaging screening is adopted.

Speaker Change: The street's associations and lobbying groups will provide CMS our industry's feedback.

Speaker Change: At the time of our second quarter financial results call in August we will be in a position to comment on Cms's proposal and its impact if any upon radnet future results.

Dr. Berger: Radnet is committed to leading radiology and health care in this direction.

Speaker Change: Revenue of steep health in addition to powering the DCD program is already offering.

Howard Berger: I'd now like to turn the call back over to Dr. Berger, who will make some closing remarks. Thank you, Mark.

Dr. Berger: I'd now like to turn the call back over to Dr. Berger, who will make some closing remarks.

Speaker Change: In tubular solutions for prostate and lung cancer screening. Furthermore, we have been expanding the use of cardiac screening and a growing number of radnet centers.

Speaker Change: Yeah.

Dr. Berger: Thank you Mark.

Howard Berger: I'd like to take a moment and read an excerpt of a letter we received from a patient who recently visited one of our New York Lenox Hill Radiology locations for her annual screening mammography exam. It reads as follows. A few weeks ago, I had a routine mammogram and sonogram as part of my regular health check. I was advised to have AI software assist with the exam. The results revealed something that had not been detectable previously. Following the findings, I completed a biopsy at another of the RadNet facilities in New York, and the results confirmed a diagnosis of stage 0 breast cancer.

Speaker Change: I'd like to take a moment and read an excellent.

Speaker Change: Through offering coronary Cte and geography, which often includes AI powered blood flow and plaque analysis.

Howard Berger: So that, along with I think things like Tech Live, now being up to 255 locations, whereas I think perhaps last year, we were just in the testing phase of this, and maybe only a half a dozen. So we're really on Tech Live. So we have ramped that up. And I think that that has helped significantly to improve our MRI revenue, despite the weather conditions and fires that we face. And also, again, I'm going to mention the enormous growth and how we are about our whole PET-CT program. So I think those are the main drivers for the increased revenue side of this, which should translate into improved performance in the third quarter, and then particularly in the second quarter, and then particularly in the third and fourth.

Speaker Change: The letter we received from a patient who recently visited one of our New York Lenox Hill radiology locations for her annual screening mammography exam.

Speaker Change: Second technology advances.

Speaker Change: It reads as follows.

Speaker Change: And specifically technology advances and specifically AI.

Speaker Change: A few weeks ago, I had a routine mammogram and sonogram as part of our regular health checkup.

Speaker Change: We will have a transformational impact on the creation and effectiveness of diagnostic imaging based programs.

Speaker Change: I was advised to have AI software assists with the exam.

Speaker Change: The results revealed something that had not been detectable previously.

Speaker Change: It becomes more widely adopted improvements in diagnosis and operational efficiencies will help address labor challenges and make screening prenatal EMS more affordable and accessible to patients and payers.

Speaker Change: Following the findings I completed a biopsy and another of the Radnet facilities in New York and the results confirmed a diagnosis of stage zero breast cancer without the software the cancer Might've gone undetected until much later, yes.

Speaker Change: We will also be instrumental in making radiologists more productive and accurate while helping to ease the shortage of radiologists in an industry, where the procedural growth will continue to accelerate.

Howard Berger: Without this software, the cancer might have gone detected until much later. Yesterday, I underwent surgery and I'm relieved to share that the procedure went well and I am now on the road to recovery. While this journey has been unexpected and challenging, I am incredibly grateful for the power of EBCD technology. Without it, my diagnosis may have been delayed, possibly leading to more complex treatment.

Speaker Change: Yesterday, I underwent surgery and I'm relieved to share that the procedure went well and now on the road to recovery. While this journey has been unexpected and challenging I'm incredibly grateful for the power of E. B C D technology.

Speaker Change: Lastly, we believe third party payers will begin to offer reimbursement for radiology AI hundreds of thousands of radnet patients like the woman who's leather I just read have recognized the value of AI and early detection. These patients are passionate and often outspoken.

Mark Stolper: Right, maybe just to follow up on the profitability, I think the revised guidance implies that margins for the balance of the year would be about 16.4% or up about 60 basis points year over year. Can you help us understand what's driving that stronger than normal progression and why EBITDA margins for the balance of the year would be up? Thanks. Yeah, I think really it's two things. One, the growth of advanced imaging, which has higher margins. Also, although we don't talk about it as much, we have very good margins in our mammography program, which is about, if you take a look at all of the breast work that's done, breast imaging work that's done for RadNet, it's about a third of our overall revenue, and it's good margin business, particularly as we improve the EBCD adoption.

Speaker Change: Without it my diagnosis may had been delayed possibly leading to more complex treatment.

Howard Berger: I share my story as a testament to the importance of medical screening. Early detection saves lives and I am living proof of that. To anyone reading this, if you have the opportunity to get enhanced detection, take it. It could make a difference.

Speaker Change: Sure. My story is a testament to the importance of medical screening.

Speaker Change: Payers have begun to take notice and based on upon constructive conversations with them. We are confident that one or more national carriers other insurers and self sure employers will offer reimbursement for <unk> program as early as year end.

Speaker Change: Early detection saves lives and I am living proof of that too.

Speaker Change: To anyone really is if you have the opportunity to get enhanced detection take it.

Speaker Change: It could make a difference.

Speaker Change: Okay.

Howard Berger: This patient's letter highlights several points that I would like to emphasize. First, in the coming years, diagnostic imaging will shift towards earlier detection, preventative maintenance, and population health management. Currently, the vast majority of diagnostic imaging is performed on patients who present with symptoms, illness, or injury. While there is tremendous value proposition in servicing these individuals, health care can be dramatically improved by screening non-symptomatic patient populations cost-effectively for some of the most common diseases which are responsible for the rising costs of health care delivery. Breast cancer exemplifies the potential for population health management, where annual screenings for women starting at the age of 40 has greatly improved women's health.

Speaker Change: This station letter highlights several points that I would like to emphasize.

Speaker Change: This reimbursement event and others like it could Mazda expansion of a new era, where radiology becomes more utilized in population health screening programs.

Speaker Change: First in the coming years diagnostic imaging will shift towards earlier detection preventative maintenance and population health management.

Speaker Change: I would also be remiss if I didn't mention the continued investment to facilitate these kind of programs that we made in opening de novo centers.

Speaker Change: Currently the vast majority of diagnostic imaging was performed on patients who present with symptoms illness or injury.

Speaker Change: Throughout Radnet in 2024, we opened up nine centers in 2000 by the end of 2025, we will have opened up 11 more new centers and are scheduled to open up an additional levers level 11.

Mark Stolper: So, that's one part of it. And the other part of it is continued Implementation of our TechLive and AI programs, which clearly are done with a much lower cost, and those help drive volume and decrease the labor costs. So I think those two things are the primary drivers for improving margins. As we introduce or implement our AI tools through other parts of the business that I described earlier from an operational standpoint, I think that that will also improve margins, which we might start seeing towards the end of the year, but certainly into 2026.

Speaker Change: 11 centers excuse me in 2026.

Speaker Change: Breast cancer exemplifies the potential for population health management, where annual screenings for women's starting at the age of 40 has greatly improved women's health.

Speaker Change: To sum up.

Speaker Change: When it is well situated at the intersection of health care services and technology.

Speaker Change: The same could be true for prostate cancer lung cancer, colorectal cancer cardiovascular disease, and other metabolic conditions, if and when widespread diagnostic imaging screening is adopted.

Speaker Change: Ned Ned has both number one this larger scale and most advanced network of National imaging centers in the United States as well as number two digital health division that is advancing operational and clinical software to transform workflow at the center.

Howard Berger: RadNet is committed to leading radiology and healthcare in this direction. RadNet Feet Health, in addition to powering the EBCD program, is already offering AI interpretive solutions for prostate and lung cancer screening. Furthermore, we have been expanding the use of cardiac screening in a growing number of RadNet centers through offering coronary CT angiography, which often includes AI-powered blood flow and plaque analysis.

Speaker Change: Radnet is committed to leading radiology and health care in this direction.

Speaker Change: It's cheap health in addition to powering a b C. D program is already offering a.

Speaker Change: <unk> and corporate levels as well as radiologists interpretation.

Speaker Change: This tech enabled an integrated approach is unique in the diagnostic imaging industry as we solve operational and clinical challenges in our core imaging center business through which we have already been deploying deep health technology in turn we are addressing the industry's core problems.

Speaker Change: Tubular solutions for prostate and lung cancer screening. Furthermore, we have been extending the use of cardiac scrutiny and a growing number of radnet centers through offering coronary C T and geography, which often includes AI powered blood flow and plaque analyses.

Mark Stolper: Great, maybe just one last one from me. I think the stock based compensation number increased meaningfully to $28.5 million in the quarter. That's close to last year's full year number. Can you help us understand the significant increase there? Is this the new run rate to consider or are there non-recurring items within that? Thanks. Yeah, part of it was stock that was given in past years and given the increase in the stock price this year relative to last year's first quarter. That added to the expense this year. So we expect for the second, third, and fourth quarters, the stock comp to be significantly lower than the first quarter.

Speaker Change: As a result, when it is in a position to benefit both from the efficiencies and cost reductions enabled by detailed solutions as well as from selling in licensing new transfer news transformational solutions to others.

Speaker Change: Second technology advances.

Speaker Change: And specifically technology advances and specifically AI.

Speaker Change: We'll have a transformational impact on the creation and effectiveness of diagnostic imaging based programs as AI becomes more widely adopted improvements in diagnosis and operational efficiencies will help address labor challenge and make screening prenatal EMS more affordable and accessible to patients and payers.

Operator, we are now ready for <unk>.

Speaker Change: A question and answer portion of the call.

Speaker Change: Thank you Sir if you would like to ask a question. Please press Star then one on your telephone keypad.

Speaker Change: It has already been addressing like to remove yourself from queue. Please press Star then two.

Speaker Change: Today's first question comes from Brian <unk>.

Speaker Change: I will also be instrumental in making radiologists more productive and accurate while helping to ease the shortage of radiologists in an industry, where the procedural growth will continue to accelerate.

Mark Stolper: In addition, we brought on a whole bunch of new technology folks within our digital health division and gave them grants that best over time, some of which were for bonuses for last year's performance of which our retention programs for the future, and that hit also in the first quarter. So you'll see our stock comp go down, it'll be a fraction of where it was in the first quarter for the remainder of the year. Great, thanks for the call. Thank you.

Speaker Change: With Jefferies. Please go ahead.

Speaker Change: Hey, good morning, guys and congrats on a quarter.

Speaker Change: Howard maybe just on your comment earlier on just the I'm just trying to are you seeing it across advanced imaging as we think about.

Howard Berger: Lastly, we believe third-party payers will begin to offer reimbursement for radiology AI. Hundreds of thousands of RadNet patients, like the woman whose letter I just read, have recognized the value of AI and early detection. These patients are passionate and often outspoken. Payers have begun to take notice, and based upon constructive conversations with them, we are confident that one or more national carriers, other insurers, and self-insured employers will offer reimbursement for EBCD programs as early as year-end.

Speaker Change: Lastly, we believe third party payers will begin to offer reimbursement for radiology.

Speaker Change: If you look out to the next three to five years I mean, how do you think the growth in advanced imaging will hold and what do you think the drivers would be for that I mean, I guess and just the broader context of utilization growth and the sustainability of current volume transfer.

Speaker Change: Hi.

Speaker Change: Thousands of Radnet patients like the woman Who's letter I, just would have recognized the value of the AI and early detection. These patients are passionate and often outspoken payers have begun to take notice and based on upon constructive conversations with them. We are confident that one or more national.

For your business.

Speaker Change: Thank you Brian good morning.

Speaker Change: We certainly expect these trends to continue.

Larry Solow: And our next question today comes from Larry Solow with CJS Securities. Please go ahead. Great, thank you. Good morning guys.

Speaker Change: The way that we are addressing the need for greater capacity.

Speaker Change: Carriers, other insurers and self and sure employers will offer reimbursement for Eden CD program as early as year end.

Larry Solow: Thanks for all the color on this call so far I just put a couple of follow-ups on the on the Medicare reimbursement just a couple there So the I guess EBCD is that in the cards for you mentioned for kind of national coverage? Inevitably forgetting a Medicare code on the EBCD. So far, we're moving in that direction. And then the second question, just on Medicare would be Transcripts provided by Transcription Outsourcing, LLC. Current belief, I believe, is that rates at least should be held flat or at least through the position fee schedule where we were shifting to general practitioners, if I'm not mistaken.

Speaker Change: Is to basically utilize tools that are either.

Howard Berger: This reimbursement event, and others like it, could mark the expansion of a new era where radiology becomes more utilized in population health screening programs. I would also be remiss if I didn't mention the continued investment to facilitate these kind of programs that we make in opening de novo centers throughout RadNet. In 2024, we opened up nine centers, by the end of 2025, we will have opened up 11 more new centers, and are scheduled to open up an additional level 11 centers in 2026.

Speaker Change: This reimbursement event and others like it could mark the expansion of a new era, where radiology becomes more utilized in population health screening programs.

Speaker Change: On AI.

Speaker Change: Developed or.

Speaker Change: Recognizing better ways to manage our business with the new equipment that we've invested in both of these tools.

Speaker Change: I would also be remiss if I didn't mention the continued investment to facilitate these kinds of programs that we make an opening de novo centers.

Speaker Change: Substantial impact and staffing.

Speaker Change: <unk> centers to accommodate the demand that we have in most of our regions we have backlogs that.

Speaker Change: Throughout Radnet in 2024, we opened up nine centers and 20 by the end of 2025, we will have opened up 11 more new centers and is scheduled to open up an additional levers level.

Speaker Change: A very difficult.

Speaker Change: Difficult given staffing shortages, but as we put the newer equipment in which is shorter time slots and as AI itself becomes more efficient for example, with our tech live we expect to capture a lot of that backlog and drive revenue through that.

Speaker Change: 11 centers excuse me in 2026.

Speaker Change: Yeah.

Howard Berger: To sum up, RadNet is well situated at the intersection of healthcare services and technology. RadNet has both, number one, the largest scale and most advanced network of national imaging centers in the United States, as well as number two, a digital health division that is advancing operational and clinical software to transform workflow at the center. Centers and Corporate Levels, as well as Radiologist Interpretation. This tech-enabled and integrated approach is unique in the diagnostic imaging industry. As we solve operational and clinical challenges in our core imaging center business, through which we have already been deploying deep health technology, in turn we are addressing the industry's core problems. As a result, RadNet is in a position to benefit both from the efficiencies and cost reductions enabled by DeepL solutions, as well as from selling and licensing these transformational solutions to others.

To sum up.

Mark Stolper: Yeah, so let me answer the second question first on the Medicare fee schedule. You obviously, we don't know what it's going to look like in 2026. Typically, Medicare comes out in the June or July timeframe with a proposal, and then the industry lobbying groups and associations, you know, negotiate that with CMS and the final rule comes out in November. We have been facing So, I'm going to go through some small cuts over the last five years, and that goes back to when CMS substantially increased reimbursement for primary care practices by increasing these codes called the E&M codes, Evaluation and Management Codes.

Speaker Change: Radnet is well situated at the intersection of health care services and technology.

Speaker Change: Additionally, AI itself will continue to incur.

Speaker Change: <unk> has both number one this largest scale and most advanced network of National imaging centers in the United States as well as number two digital health division that is advancing operational and clinical software to transform workflow at the center.

Speaker Change: Increased demand as I mentioned in my remarks things like our <unk> program, which grew by a third comparing last year's results in the first quarter to this year's.

Speaker Change: We will continue not only inside radnet outside radnet as we make this.

Centers and corporate levels as well as radiologists interpretation.

Speaker Change: Incredibly important tool available to others that will help be facilitated by our Ikea at acquisition and other AI products that we intend to offer for screening, but it's not limited just to.

Speaker Change: This tech enabled an integrated approach is unique in the diagnostic imaging industry as we saw the operational and clinical challenges in our core imaging center business through which we have already been deploying deep health technology in turn we are addressing the industry's core problems as a result.

Speaker Change: Breast AI advanced imaging will continue to grow as newer and newer techniques such as in cardiac imaging and Cte and geography.

Mark Stolper: They did it on a budget-neutral basis, meaning that they're taking reimbursement out of all the other specialties to pay for that larger reimbursement that occurred almost five years ago. We believe that 2025 is the last year of the phase-in of the pay-for of that major reimbursement change five years ago. And so, we think that the outlook for Medicare reimbursement, you know, in the coming years is stable, if not positive. You know, we hope that, you know, we can advocate for reimbursement increases, given the fact that, you know, the imaging is becoming a bigger part of the healthcare delivery system, number one, and number two, the cost of doing business, you know, has changed dramatically over the last, you know, half a decade, and hopefully that CMS recognizes that.

Speaker Change: It is in a position to benefit both from the efficiencies and cost reductions enabled by detailed solutions as well as from selling in licensing new transformation transformational solutions to others.

Speaker Change: Maintain a enormously beneficial position for managing health cardiovascular diseases with greatest cause of death in the United States.

Operator: Operator, we are now ready for the... Question and answer portion. Thank you, sir.

Speaker Change: Operator, we are now ready for that.

A question and answer portion of the call.

Speaker Change: Thank you, Sir if you'd like to ask a question. Please press Star then one on your telephone keypad.

Operator: If you'd like to ask a question, please press star then one on your telephone keypad.

Operator: If your question has already been addressed and you'd like to remove yourself from queue, please press star then two.

Speaker Change: And newer tools for treating this with medications once.

Speaker Change: It has already been addressed and the like to remove yourself from queue. Please press Star then two.

Brian Tanquilut: Today's first question comes from Brian Tanquilut with Jefferies. Please go ahead. Hey, good morning, guys, and congrats on the quarter. Howard, maybe just on your comment earlier, and just the strength you're seeing across advanced imaging, as we think about, you know, if you look out to the next three to five years, I mean, how do you think the growth in advanced imaging will hold? And what do you think the drivers would be for that?

Unidentified Moderator: Today's first question comes from Bryan Hunt.

Speaker Change: Risks are notice.

Bryan Hunt: With Jefferies. Please go ahead.

Speaker Change: Patient.

Bryan Hunt: Hey, good morning, guys and congrats on the quarter.

Speaker Change: Have changed.

Speaker Change: Entire cardiology business dramatically so when you add to that.

Howard maybe just on your comment earlier on just the I'm just.

Bryan Hunt: Trying to are you seeing it across advanced imaging as we think about you know you. If you look out to the next three to five years I mean, how do you think.

Speaker Change: Enormous growth that we're seeing in <unk>, which.

Speaker Change: Which grew by I think it was 22, 3% almost 23%.

Bryan Hunt: <unk> and advanced imaging will will hold and what do you think the drivers would be for that I mean, I guess and just the broader context of utilization growth and the sustainability of current volume transfer.

Mark Stolper: But we don't...

Howard Berger: I mean, I guess, in just the broader context of utilization growth and the sustainability of current volume transfer for your Thank you, Brian. Good morning. We certainly expect these trends to continue. The way that we are addressing the need for greater capacity is to basically utilize tools that are either AI. developed or recognizing better ways to manage our business with the new equipment that we've invested in. Both of these tools have had substantial impact in staffing the centers to accommodate the demand that we have. In most of our regions, we have backlogs that are very difficult given staffing shortages.

Speaker Change: The challenging first quarter too.

Mark Stolper: We honestly won't really know or have a really good feeling about it until they come out with their proposal. I'm going to amplify a little bit on that.

And last year to this year, we expect that growth to continue I think we are uniquely capable of doing that because of the numerous.

Bryan Hunt: Your business.

Speaker Change: Thank you, Brian and good morning, we certainly expect these trends to continue.

Mark Stolper: I think part of your question might have been about whether or not there's still any opportunity in 2025 for mitigation of the cuts that went into place January 1st. I'll make two comments on that. Number one, nothing in our forecast includes any changes in Medicare reimbursement for this year. whether it would be up or down. I don't see it going down, obviously, because that fee schedule has already been adopted. But in January, there was supposed to be some changes put forth to the Congress to either mitigate the cuts or potentially bring them down to zero, or maybe even increase them, like you said.

Speaker Change: <unk> systems that we have across the.

Speaker Change: Way that we are addressing the need for greater capacity is to basically you eyes tools that are either.

Speaker Change: All of our markets and for which we get various specialized reading capabilities to help the.

Speaker Change: Referring physicians have confidence in the value of these tools so.

Speaker Change: M a I.

Speaker Change: I see imaging, particularly for advanced imaging.

Speaker Change: Developed or.

Speaker Change: Recognizing better ways to manage our business with the new equipment that we've invested in both of these tools.

Speaker Change: <unk> growing.

Speaker Change: The growing at.

Speaker Change: Probably an accelerated rate.

Speaker Change: But I don't want to lose sight of the fact that routine imaging is growing rapidly also.

Speaker Change: Has substantial impact and staffing are the centers to accommodate the demand that we have in most of our regions. We have backlogs that are very difficult.

Speaker Change: And that will be a major focus.

Speaker Change: For Radnet in the near future here to help facilitate managing that growth from an operational standpoint, and improving the quality of what's done not only in outpatient imaging centers, but to other imaging providers that are not necessarily Steve.

Speaker Change: Difficult given staffing shortages, but as we put the newer equipment, which has shorter time slots and as AI itself becomes more efficient for example, with our check live we expect to capture a lot of that backlog and drive revenues through that.

Howard Berger: But as we put the newer equipment in, which has shorter time slots, and as AI itself becomes more efficient, for example, with our TechLive, we expect to capture a lot of that backlog and drive revenue through that. Additionally, AI itself will continue to increase demand. As I mentioned in my remarks, things like our EBCD program, which grew by a third comparing last year's results in the first quarter to this year's, will continue not only inside RadNet, but outside RadNet as we make this incredibly important tool available to others. That will help be facilitated by our ICAT acquisition and other AI products that we intend to offer for screening.

Mark Stolper: But that's the second part of my comment is, prognosticating anything that this government will do on almost any level is a real crapshoot. If there's a benefit that will come this year, that will be a positive and help us continue to meet or beat our guidance. But there's no expectation that that's going to happen. And I'll keep my fingers crossed.

Speaker Change: In radiology as part of their provider responsibilities.

Speaker Change: No that makes sense and then maybe mark just shifting gears a little bit here as I think about JV and M&A.

Speaker Change: Additionally, AI itself will continue to be.

Just curious what you can share with us in terms of your pipeline and where you think you could take a.

Speaker Change: Kris demand as I mentioned in my remarks things like our E. B C. D program, which grew by a third comparing last year's results in the first quarter to this years.

Speaker Change: M&A deal flow over the next 12 to 18 months.

Jack: Hi, Jack.

Speaker Change: We will continue not only inside radnet outside radnet as we make this.

Speaker Change: Yeah.

Speaker Change: Hi, I'm from March since then I'm, a little bit closer to it and Mark is.

Speaker Change: The pipeline is very robust.

Speaker Change: We don't go out looking necessarily for customers, we need customers or clients potential clients that.

Brian Tanquilut: But it's not limited just to Now that makes sense.

Speaker Change: They recognize the need that they have for radiology solutions.

Breast AI advanced imaging will continue to grow as newer and newer techniques such as in cardiac imaging and C T and geography.

Speaker Change: That includes both operating the.

Speaker Change: Opportunities for the demand that they have as well as.

Speaker Change: Giving them an education to know how the impact of AI and it solutions can positively improve the delivery of health care.

Speaker Change: Maintained a enormously beneficial position for managing health cardiovascular diseases. The greatest causes death in the United States and newer tools for treating this with medications.

Howard Berger: Number one, getting CMS to issue a new code for breast AI is difficult and problematic. While they have issued new codes for other AI tools in the area of cardiac imaging, thyroid imaging, which you'll hear more about from us next quarter, and some other tools. But breast, because of the consequences of this, and the ubiquity of it, I believe is going to be a difficult lift. So this may be a situation, because of very positive conversations that we're having with commercial payors and other type of payors, and self-insurers, who see this value. I believe they will adopt it.

Speaker Change: We have gotten a number of calls which we are having discussions.

Speaker Change: Hospitals that we currently have joint ventures, with well I'm happy to say several that we do not recognize the value proposition that ran it hasn't.

Speaker Change: Once.

Speaker Change: Risks are noticed in patient have changed.

Speaker Change: Tire cardiology business dramatically, so when you add to that.

Speaker Change: Transforming their radiology.

Speaker Change: Delivery and I really want to emphasize that because.

Speaker Change: Enormous growth that we're seeing in pet C T, which has which grew by I think it was 22, 23% almost 23% and a challenging first quarter too.

Speaker Change: Hospitals.

Are having the same kind of problems inside their four walls with radiology as SaaS and both on the physician side as well as the technology side. So what we're experiencing in other Av.

Speaker Change: Yeah last year to this year, we expect that growth to continue I think we are uniquely capable of doing that because of the numerous pets.

Speaker Change: Outpatient imaging centers or experience in the way of challenging labor demands as the same thing that hospitals are having despite the fact that.

Speaker Change: Pet seating systems that we have across the.

Speaker Change: All of our markets and for which we get various specialized reading capabilities to help the referring.

Speaker Change: They offer substantially higher.

Howard Berger: And we have, I think, been very instrumental in establishing a price point, which is comfortable for our patients, and probably will translate into something that sets a standard for the I believe it will come from the non-governmental side of it this time, as opposed to in the past.

Speaker Change: <unk>.

Speaker Change: Compensation to their employees. So these kind of solutions are the future and I believe.

Speaker Change: Referring physicians have confidence in the value of these tools so.

Speaker Change: Every hospital system at some point, we'll be adopting some form of <unk> and AI solutions as a part of their.

Speaker Change: I see imaging, particularly for advanced imaging.

Speaker Change: <unk> are growing at this probably an accelerated rate, but I don't want to lose sight of the fact that routine imaging is growing rapidly also.

Speaker Change: Strict strategy that not only as a.

Speaker Change: Necessity for the Amber probably exit essential if we're going to continue to try.

Unknown Attendee: Gotcha.

Speaker Change: And that will be a major focus for radnet in the near future here to help facilitate managing that growth from an operational standpoint, and improving the quality of what's done not only in outpatient imaging centers, but to other imaging providers that are.

Howard Berger: And just a couple on the DeepHealth side. So, appreciate all the updates on the tech live. It sounds like that implementation is advancing. And I think you mentioned on the DeepHealth operating system, you have a pilot in place, and it sounds like... Implementation across your centers. has begun.

Speaker Change: Try to capture all of the downstream opportunities that screening technologies and AI are capable of delivering.

Speaker Change: No.

Brian: I think I've said before in the past Brian that.

Howard Berger: I'm just trying to get a feel for that and sort of targets and timelines for that. A timeline for the implementation of the full Deep Health system, yes. We've begun pilot programs in our contact centers and in scheduling and phone call bots to help our patients. The early results are very promising, but I am confident that by year end, most of all of the tools that we have will be in place. While we do that, we obviously have expenses related to the implementation of it and continuing the older systems until we're ready to turn over.

Brian: Now I'd like to have all 400 of our centers in joint ventures with hospitals I think.

Speaker Change: Not necessarily steeped in radiology as part of their provider responsibilities.

Brian: The currently 40% of our centers that we have almost 160.

Speaker Change: No that makes sense and then maybe mark just shifting gears a little bit here as I think about your JV and M&A.

Howard Berger: And maybe Mark, just shifting gears a little bit here, as I think about, you know, JVs and M&A, just curious what you can share with us in terms of your pipeline and where you think you could take a M&A deal flow over the next 12 to 18 I'm going to hijack that question, Brian, from Mark, since I'm a little bit closer to it than Mark is. The pipeline is very robust. We don't go out looking necessarily for customers. We need customers or clients, potential clients, that recognize the need that they have for radiology solutions. And that includes both operating the opportunities for the demand that they have as well as giving them an education to know how the impact of AI and IT solutions can positively improve the delivery of health care.

Brian: Are performing exceptionally well.

Brian: And I believe indicated how strong that model as and when other systems see that and talk to our partners.

Just curious what you can share with us in terms of your pipeline and where do you think you could take it.

Speaker Change: M&A deal flow over the next 12 to 18 months.

Brian: Quickly determined that Radnet has the tools to help make this heavy lift and transfer transformational requirement.

Speaker Change: Yeah.

Jack: Hi, Jack.

Speaker Change: Two questions from Mark since I am a little bit closer to it and Mark is the pipeline is very robust. We we don't go out looking necessarily for our customers, we need customers or clients potential clients are there.

Brian: I appreciate it thank you.

Speaker Change: Thanks, Brian.

Speaker Change: And our next question today comes from David resolved with <unk> Securities. Please go ahead.

Speaker Change: Hey, guys. This is actually a greater macallister on for Dave This morning.

Speaker Change: Now is the need that they have for radiology solutions and that includes both operating the.

Speaker Change: Just wanted to follow up on the Labor front I know you guys talked about some improvement in the first quarter, but wanted to check specifically on technologist hiring trends and last quarter. I think you talked about a $45 million headwind from <unk> just wanted to see if we're still on track for that.

Howard Berger: I think the benefits from that, which I mentioned in some of my other remarks, particularly as they might be reflected in improved margins, are more likely to be seen in 2026 than they are in 2025. I can only mention that we've got 400 centers to implement this in, and it's a heavy lift, but we're up to the task.

Speaker Change: Opportunities for the demand that they have as well as giving.

Speaker Change: Giving them an education to know how the impact of AI and I T solutions can positively improve the delivery of health care.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: About $45 million of <unk>.

Howard Berger: We have gotten a number of calls, of which we are having discussions, with hospitals that we currently are doing things with, but I'm happy to say several that we do not, that recognize the value proposition that RadNet has in transforming their radiology delivery. And I really want to emphasize that because hospitals are having the same kind of problems inside their four walls with radiology staffing, both on the physician side as well as the technologist side. So what we're experiencing and other of the outpatient imaging centers are experiencing the way of challenging labor demands is the same thing that hospitals are having, despite the fact that they offer substantially higher compensation to their employees.

Speaker Change: Additional kind of same center labor costs increases built into our 2000 and all the guidance Im Grace in debt net.

Speaker Change: We have gotten a number of calls which we are having discussions.

Speaker Change: With hospitals that we currently have a joint venture with well I'm happy to say several that we do not recognize the value proposition that ran it has and transforming their radiology, a delivery and I really want to emphasize that because.

Speaker Change: Yes.

Unknown Attendee: Peace be upon you. Thank you.

Speaker Change: Still on track.

Speaker Change: In terms of its still built into our budget, we are seeing some improvement.

Brandon Carney: And our next question today comes from Yuan Zhi with D. Reilly. Please go ahead.

Speaker Change: On the hiring side, the availability of technologists, which is our biggest pain point.

Brandon Carney: Good morning. This is Brandon Carney on for you on. Thanks for taking our questions. First, you previously talked about the recent trends in capitation. Have you gotten any more visibility on the cadence of that trend for the remainder of the year? Well, the capitation for us has been pretty stable. We're actually probably decreasing the relative to our revenue capitation as a percentage of this. Part of it is because the rest of our business in other markets than Southern California is all fee-for-service. But also, there are capitation contracts where we have, at the term, elected to go to fee-for-service because the demand that we have is such that we cannot and will not take reimbursement that doesn't allow us to continue to invest in our business, both on the equipment and services side, as well now as the AI.

Speaker Change: Which is alleviating some of the financial burden that that we've been expanding.

Speaker Change:

Speaker Change: Hospitals are having the same kind of problems inside their four walls with radiology staff that you both on the physician side as well as the technology side. So what we're experiencing in other of the outpatient imaging centers or experiences.

Speaker Change: With outside staffing companies.

Speaker Change: So I think at this point, we're still comfortable with the $45 million of additional labor expenses that we built into the budget.

Okay Awesome and then just sticking with Labour obviously still early in the tech lot of rollout, but I just wanted to see if you could talk about how the rollout has went too far and then just saying nursing leverage that you've seen.

Speaker Change: The way of challenging labor demands as the same thing the hospitals are having despite the fact that they.

Speaker Change: They offer substantially higher.

After the rollout thus far.

Speaker Change: Compensation to their employees. So these kind of solutions are out of the future and I believe.

Speaker Change: Yes, okay.

Unknown Attendee: So these kind of solutions are the future, and I believe every hospital system at some point Unknown Attendee, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Larry Bland, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Larry Bland, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Gregory Sorensen, Cornelis Appreciate it.

Speaker Change: As I mentioned.

Speaker Change: 265 of our <unk>.

Speaker Change: Every hospital system at some point, we'll be adopting some form of I T and AI solutions as a part of their strip.

Speaker Change: We have over 400 MRI centers.

Speaker Change: On both the east and West Coast.

Speaker Change: And the reception of this by.

Speaker Change: The technologies as well as the managers and all of these centers has been overwhelmingly positive.

Strict strategy that not only is a necessity for them, but probably existential if theyre going to continue to.

Speaker Change: There's two reasons for that number one.

Howard Berger: So, we haven't lost any real business from the transition away from capitation because those patients are still coming to us, but at better reimbursement rates under a fee-for-service program. That being said, we do have more accommodating large capitation groups that have chosen to stay with capitation, but which were benefiting from some significant increases in their capitation rate to make their overall utilization on a fee-for-service basis more consistent with the rest of our business. So, I think capitation is still a very good business, but one that does not necessarily fit in to the bigger RadNet model and is more of really a Southern California.

Speaker Change: Try to capture all of the downstream opportunities that screening technologies and AI are capable of delivering.

Speaker Change: <unk>.

Speaker Change: Oversight by.

Speaker Change: Technologists MRI technology in particular that can allow faster and more accurate scanning has already been seen and so in some of the centers where the tech line is operational.

Speaker Change: So.

Speaker Change: I think I've said before in the past Brian that.

Speaker Change: Now I'd like to have all 400 of our centers in joint ventures with hospitals I think.

Speaker Change: We've been able to manage the local MRI from a staffing standpoint.

Speaker Change: The currently 40% of our centers that we have almost 160.

Speaker Change: You may not have enough technologies to open for the hours that we won in a tech aid who has been trained on safety and other tools to manage these patients.

Speaker Change: Were performing exceptionally well and.

Speaker Change: And I believe indicate how strong that model is and when other systems see that and talk to our partners are they quickly determined that radnet has the tools to help make this a heavy lift and Ah transfer more transformational.

Speaker Change: Along with the remote tech using tech line has been instrumental in helping drive.

Revenue opportunities.

Speaker Change: MRI somewhat uniquely has for us given the high demand and the.

Speaker Change: Requirement.

Howard Berger: Thank you, Howard.

Speaker Change: I appreciate it thank you.

Unknown Attendee: Thanks, guys.

Thanks, Brian.

Mark Stolper: Yeah, we benchmark each quarter, all of our contracts against the other payer classes or the other books of business that we have. And, you know, if we fall behind where we need to be from a reimbursement standpoint relative to other books of business, we go back to the contracts, particularly when they're, you know, at the renewal process. And, you know, we've had some, you know, challenging discussions over the past, you know, couple years, and which has led us to cancel a number of those capitation relationships. And as Dr. Berger said, flip them to fee-for-service, where, you know, we get significantly higher rates.

Grayson McAllister: And our next question today comes from David MacDonald with Securities. Please go ahead. Hey, guys, this is actually Grayson McAllister on for Dave this morning. Just wanted to follow up on the labor front. I know you guys talked about some improvement in the first quarter, but wanted to check specifically on technologist hiring trends. And last quarter, I think you talked about a $45 million headwind from SW&B. I just want to see if we're still on track to that. Okay. Yeah, there's about $45 million of additional kind of same-centered labor costs increases built into our 2025 guidance.

Speaker Change: And then unfortunately today comes from David resolved, which was securities. Please go ahead.

Speaker Change: We need to open for more and more capacity so.

Speaker Change: What we expect is over a period of time.

Speaker Change: Hey, guys. This is actually a great trend macallister on for Dave. This morning, just wanted to follow up on the Labor front I know you guys talked about some improvement in the first quarter, but wanted to check specifically on technologist hiring trends and last quarter. I think you talked about a $45 million headwind from S. B.

Speaker Change: Now and the end of the year to have all 400 centers on our tech live and that will allow us to reduce some of the outside staffing that we have been forced to use now for the last year and a half.

Speaker Change: Just wanted to see if we're still on track for that thanks.

Speaker Change:

Speaker Change: Since this trend has become a really ingrained in the energy World. If you will not just for us but everybody.

Speaker Change: Okay.

Speaker Change: Yeah, there's about $45 million of additional kind of same center labor costs increases built into our 2000, all the guidance I'm Grace in that yet.

Speaker Change: So that part of it might help mitigate some of that $45 million, but we might not see that until late this year or more likely in 2026.

Mark Stolper: Grayson, that's still on track, you know, in terms of, you know, it's still built into our budget. We are seeing some improvement on the hiring side, the availability of technologists, which is our biggest pain point. Which is alleviating some of the financial burden that we've been expending with outside staffing companies. So I think at this point, we're still comfortable with the $45 million of additional labor expenses that we built into the budget. Okay, awesome.

Speaker Change: Yeah. That's that's still on track. This you know in terms of you know it's still built into our budget. We are seeing some improvement on the hiring side the availability of of technologists, which is our biggest pain point.

Speaker Change: Xena aside.

Speaker Change: We are now seeing I believe a better environment for hiring out hiring has been facilitated both by some educational programs that we used to.

Speaker Change: Which is alleviating some of the financial burden that that we've been expanding our with outside staffing companies. So Oh I think at this point, we're still comfortable with the $45 million of additional labor expenses that we built into the budget.

Speaker Change: <unk> four <unk>.

Speaker Change: Non technologist staff that we've been doing in conjunction with local organizations for the last year or so and we are expanding that to include technologists.

Mark Stolper: of that patient volume, just at fee-for-service higher rates. And so, you know, my belief is that a number of these contracts will end up coming back to us in a year or two from now when they recognize that they were probably financially better off accepting higher capitation rates and shifting the risk and the burden of the utilization to RadNet than to keeping that risk themselves and sending out the business at higher fee-for-service rates. So, we've been through a number of these cycles before, and as you can see, it's not impacting our overall revenue. It's just shifting revenue from the capitation portion to the fee-for-service portion.

Speaker Change: Okay Awesome, and then just sticking with Labour.

Howard Berger: Then just sticking with labor, obviously, still early in the tech live rollout, but I just wanted to see if you could talk about how the rollout has went so far, and then just any nursing leverage that you've seen, you know, through the rollout thus far. Thanks. As I mentioned, we have 265 of our... Unknown Attendee, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Lawrence Solow, Andrew Oversight by technologists, MRI technologists in particular, that can allow faster and more accurate scanning has already been seen. And so in some of the centers where the TechLive is operational, we've been able to manage the local MRI from a staffing standpoint.

Speaker Change: In areas like for our <unk> scanning, but we're also looking to do that in radiology.

Speaker Change: Obviously still early in the tech life rollout, but I just wanted to see if you could talk about how the rollout has went too far and interesting nursing leverage that you've seen.

<unk> and MRI.

Speaker Change: And so.

Speaker Change: After the rollout thus far.

Speaker Change: The people are gravitating towards programs that will allow us to bring newer employees into the radnet.

Speaker Change: Yes sure.

Speaker Change: As I mentioned.

Speaker Change: 255 of our.

Speaker Change: Suddenly over for the MRI centers.

Speaker Change: Operations, but also I believe with AI and other technology tools that we're using.

Speaker Change: On both the east and West Coast.

Speaker Change: And the reception of this by the technologies as well as the managers and all of these centers has been overwhelmingly positive.

Speaker Change: Some of the available technologies out there are starting to prefer.

Brandon Carney: Got it. That's helpful. Thanks.

Speaker Change: Job opportunities inside of.

Howard Berger: And then on the pet business, can you help us understand the impact of pricing of the radio pharmaceutical imaging agents? If the unit prices of imaging agents get lower, does it have an overall benefit to RadNet's operation? Yeah, I'll take that. Yeah, what you're really asking about is some of the newer esoteric tracers as opposed to FDG, which was, you know, the commoditized agent that we use in most of the oncological studies. The new tracers for Alzheimer's and prostate imaging are very expensive. Essentially, the reimbursement for that is on a pass-through basis. So we don't make much money, if at all, in terms of marketing, marking up the radioactive tracer in that exam.

Speaker Change: Radnet, So I believe on both the east and West Coast, we're starting to see somewhat of a loosening of the difficulties that we've had in staffing.

Speaker Change: There's two reasons for that number one are the.

Speaker Change: Oversight by a technologist.

Speaker Change: I take the houses in particular that can allow faster and more accurate scanning has already been seen.

Speaker Change: Expect that to improve throughout the year, but be a little bit more something that we can quantify.

Speaker Change: So in some of the centers, where the tech life is operational we have been able to manage the local MRI from a staffing standpoint.

Speaker Change: We get a.

Speaker Change: Past the fourth quarter of this year. So for the current time I'm very comfortable that we have that built into our 2025 performance, but expect.

Speaker Change: You may not have enough.

Speaker Change: And those technologies to open for the hours that we won and a tech aid who has been trained on safety and other tools to manage these patients along with the remote check using tech line has been instrumental in helping drive the.

Speaker Change: All of the.

Howard Berger: to open for the hours that we want. And a tech aide who has been trained on safety and other tools to manage these patients, along with the remote tech using TechLive, has been instrumental in helping drive the revenue opportunities that MRI somewhat uniquely has for us, given the high demand and the need to open for more and more capacity. So what we expect is over a period of time, between now and the end of the year, to have all 400 centers on our TechLive, and that will allow us to reduce some of the outside staffing that we have been forced to use now for the last year and a half.

Speaker Change: Tools and methods that we're using for staffing and operating our centers will be highly effective in the second half of this year and certainly into 2025.

Speaker Change: I'd also say that we're beginning to implement.

Speaker Change: Virtually all of the modules for our detailed operating system inside of Radnet centers on a pilot basis.

Speaker Change: Revenue opportunities that MRI somewhat uniquely has for us given the high demand and the.

Howard Berger: So to the extent that the prices go down, and they should go down over time, because as the industry does more and more of, you know, prostate and these Alzheimer's imaging, we use this tracer more and more, and more competition on the manufacturing side comes into play. So we do expect these tracers, the pricing, to come down over time. But for us, there's really no profitability in these tracers. Unknown Attendee, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Yeah, so in the first quarter of 2025, the prostate and the Alzheimer's studies, the amyloid studies represented about 19% of all of our, our capitated, excuse me, all of our PET-CT business.

Speaker Change: We need to open for more and more capacity so.

Speaker Change: And it will affect everything that we do from.

Speaker Change: What we expect is over a period of time between now and the end of the year to have all 400 centers on our tech wise and that will allow us to reduce some of the outside staffing that we have been forced to use now for the last year and a half.

Speaker Change: Our contact centers scheduling.

Speaker Change: Reimbursement operations.

Speaker Change: Kiosks at our centers for faster and more accurate.

Speaker Change: Our.

Speaker Change: <unk> of the patients for their scans.

Speaker Change: Hum.

Speaker Change: Insurance verification and we expect to have large parts of this operational by year end and look forward to giving you more specifics on the impact that that will have but again. This is all part of a transformational effort that we're making.

Howard Berger: Since this trend has become really ingrained in the imaging world, if you will, not just for us, but everybody. So that part of it might help mitigate some of that $45 million, but we might not see that until late this year, or more likely in 2026. That aside, we are now seeing, I believe, a better environment for hiring. Our hiring has been facilitated both by some educational programs that we use to train for our non-technologist staff that we've been doing in conjunction with local organizations for the last year or so. And we are expanding that to include technologists first in areas like for DEXA scanning, but we're also looking to do that in radiology and MRI.

Since this trend has become a really ingrained in the our imaging world. If you will not just for us but everybody.

Speaker Change: So that part of it might help mitigate some of that $45 million, but we might not see that until late this year or or more likely in 2026.

Speaker Change: We believe we will be something that virtually any buddy who performs diagnostic imaging procedures procedures.

Speaker Change: Assai.

Speaker Change: And I'm seeing I believe a better environment for hiring hiring has been facilitated both by some educational programs.

We will need to have or want to have in one form or another.

Howard Berger: Great. Thanks Howard.

Speaker Change: <unk>.

Howard Berger: And it's, and that's been growing significantly, you know, year over year, particularly in the amyloid studies, where we're doing over 500 studies now a month. And those studies really started about a year, year and a half ago, as, as the Medicare regional administrators started more frequently allowing for those studies to take place, to qualify these patients on some of these newer drug therapies. So it's been a big, and of course, prostate imaging has really been a big driver for us on the PET-CT side, and the two of those combined being about 19% of our business today is really responsible for the more than 20% growth that we've been seeing quarter over quarter in our PET-CT.

Speaker Change: We used to train four.

Speaker Change: Thank you and our next question comes from Andrew Mok of Barclays. Please go ahead.

Speaker Change: Our non technologist staff that we've been doing in conjunction with local organizations for the last year or so and we are expanding that to include technologist.

Andrew Mok: Hi, good morning, despite the weather and volume headwinds revenue still finished six 5% above consensus how did revenue perform against your own internal expectations in the quarter and can you comment on why there wasn't a higher earnings conversion on that precede revenue. Thanks.

Speaker Change: First in areas like for Dexter scanning, but we're also looking to do that in radiology.

Speaker Change: Right.

Speaker Change: Sure.

Speaker Change: And so.

Speaker Change: So if.

Speaker Change: If you add back the $22 million of revenue, we lost due to the fires and due to the.

Speaker Change: The people are gravitating towards programs that will allow us to bring newer employees into a radnet operations, but also I believe with AI and other technology tools that we're using some of the available.

Speaker Change: Severe winter weather conditions in the northeast and the mid Atlantic Our revenue was strong and was in line with our internal internal guidance our budget.

Speaker Change: Did see these impacts really were felt in January and February March the business bounced back very nicely, we didn't have any weather issues.

Speaker Change: Technologies out there our Saturday to prefer a job opportunities inside of <unk>.

Unknown Attendee: Thank you. I agree. Thanks for taking our question. Thank you.

Speaker Change: Radnet, So I believe on both the east and West Coast.

Speaker Change: We're starting to see somewhat of a loosening of the difficulties that we've had in staffing and I expect that to improve throughout the year, but be a little bit more something that we can quantify as we get.

Speaker Change: <unk>.

Speaker Change: Displaced populations in southern California, both in the west side of it that way and in the Pasadena Altadena area that stabilized people began using <unk>.

Howard Berger: And this concludes our question and answer session. I'd like to turn the conference back over to the company for any closing remarks. Thank you. Again, I would like to take this opportunity to thank all of our shareholders for their continued support and the employees of RadNet for their dedication and hard work. Management will continue its endeavor to be a market leader that provides great services with an appropriate return on investment for all Thank you for your time today and I look forward to our next Thank you.

Speaker Change: Health care services.

Speaker Change: Past the fourth quarter of this year. So for the current time I'm very comfortable that we have that built into our 2025 performance, but expect a all of the.

Speaker Change: And utilization looked more normal after that and we've had a strong April and strong may so.

Speaker Change: That's what's given us the confidence to increase our budget both on the revenue and the EBITDA side for the rest of the year we're seeing.

Speaker Change: Tools and methods that we're using for staffing and operating our centers will be highly effective in the second half of this year and certainly into 2025.

Speaker Change: Really the continuation of the strong trends that.

Unknown Attendee: This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Speaker Change: That we've had up to this.

Speaker Change: First quarter and I.

Speaker Change: I would also say that we're beginning to implement them virtually all of the modules for our detailed operating system inside of Radnet centers on a pilot basis.

Speaker Change: I feel good about the rest of the year in.

Speaker Change: In terms of the profitability.

Speaker Change: The first quarter first quarter is always our most challenged quarter for a number of reasons first like other health care services companies, we suffer from the fact that deductibles reset annual deductibles reset and Theres just less utilization.

Speaker Change: And it will affect everything that we do from a.

Speaker Change: Our contact centers scheduling.

Speaker Change: Here in the first quarter or the beginning beginning parts of every year.

Speaker Change: Reimbursement operations.

Speaker Change: He asks at our centers for faster and more accurate.

Speaker Change: In terms of health care.

Speaker Change: Second.

Speaker Change: Is that we've got some expenses in the first quarter that.

Speaker Change: A presentation of the patients floor there the scans.

Speaker Change: Typically we don't have in the rest of the year the acceleration of the payroll taxes that we pay until the highly compensated folks maxed out.

Speaker Change: We have.

Speaker Change:

Speaker Change: Challenges related to.

Speaker Change: The way we expense our bonuses from the prior year, the first quarter and then in general we front load our capex budget.

Speaker Change: And I believe will be something that virtually any buddy who performs diagnostic imaging precedent procedures.

Speaker Change: So our R R.

Speaker Change: Our DSO has lengthened slightly in the first quarter due to the.

Speaker Change: We will need to have or want to have in one form or another.

Speaker Change: The reset of deductibles.

Speaker Change: Let me add to Mark's comments.

Unknown Attendee: Great. Thanks, Howard. Thank you.

Great. Thanks Howard.

Speaker Change: I think some of the growth also is coming from the nine new centers that we opened.

Richard: Thanks Richard.

Unidentified Moderator: Our next question today comes from Andrew Mok of Barclays. Please go ahead.

Speaker Change: 2020 for those de Novo centers.

Speaker Change: Take some time to ramp up and buy.

Speaker Change: 2025.

Speaker Change: Since they were opened throughout the year I believe we're seeing some of that impact and the reason I mentioned and that is that we are developing a wasn't more centers here in 2025 of which I believe.

Unidentified Moderator: Sure.

Unidentified Moderator: So if.

Unidentified Moderator: If you add back the $22 million of revenue, we lost due to the fires and due to the severe winter weather conditions in the northeast and the mid Atlantic or revenue was strong and was in line with our internal and internal guidance our budget.

Speaker Change: Less than five of them have opened so far maybe only three have opened so far.

Speaker Change: In 2200 class. So we have eight more centers that will continue to contribute to revenue growth slated for this year and then 11 more for for next year, which are in the early stages of development. So.

Mark Stolper: We did see that these impacts really were felt in January and February. March, the business bounced back very nicely. We didn't have any weather issues. The displaced populations in Southern California, both in the west side of L.A. and in the Pasadena, Altadena area, that stabilized. People began using health care services, and utilization looked more normal after that. And we've had a strong April and strong May. So that's what's given us the confidence to increase our budget, both on the revenue and the EBITDA side for the rest of the year. We're seeing really the continuation of the strong trends that we've had up to this first quarter, and I feel good about the rest of the year.

Unidentified Moderator: We did see you know that these impacts really were felt in January and February March the business bounced back very nicely, we didn't have any weather issues.

Speaker Change: That along with I think things like Tech live now.

Speaker Change: Now being up to 255 locations, whereas I think perhaps last year. We were just in the testing phase of this and maybe only a half a dozen so.

Unidentified Moderator: <unk>.

Unidentified Moderator: Displaced populations in southern California, both in the West side of L. A and then the Pasadena Altadena area that stabilized people began using our health care services and utilization looked more normal after that and we've had a strong April.

Speaker Change: We're really on tech lives. So we have ramped that up and I think that that has helped significantly to improve our MRI.

Speaker Change: Revenue despite the weather conditions.

Speaker Change: And fires that we face.

Unidentified Moderator: Strong may so that that's what's given us the confidence to increase our budget both on the rather than the EBITDA side for the rest of the year we're seeing.

Speaker Change: Also again I am going to mentioned.

Speaker Change: Enormous growth and how proud we are about our whole pet Cte program.

Speaker Change: So I think those are the main drivers for the increased revenue side of this which should translate into.

Unidentified Moderator: Really the continuation of the strong trends that.

Unidentified Moderator: That we've had up to this that this first quarter and.

Speaker Change: Improved performance.

Unidentified Moderator: I feel good about the rest of the year in terms of the profitability of the first quarter first quarter is always our most challenged quarter for a number of reasons.

Mark Stolper: In terms of the profitability of the first quarter, first quarter is always our most challenged quarter for a number of reasons. Second is that we've got some expenses in the first quarter that typically we don't have in the rest of the year, the acceleration of the payroll taxes that we pay until the highly compensated folks max out. We have challenges related to the way we expense our bonuses from the prior year, the first quarter. And then in general, we front load our CapEx budget, and our DSOs lengthen slightly in the first quarter due to the reset of deductibles.

Speaker Change: In the third quarter, and particularly in the excuse me second quarter, and particularly in the third and fourth quarters.

Speaker Change: Right and maybe just a follow up on the profitability, but I think the revised guidance implies that margins for the balance of the year would be about 16, 4% or up about 60 basis points year over year can you help us understand what's driving that stronger than normal progression NY EBITDA margins for the balance of the year would be up.

Unidentified Moderator: Like other health care services companies, we suffer from the fact that deductibles reset annual deductibles reset and Theres just less utilization.

Unidentified Moderator: Here in the in the first quarter of the Big again, beginning parts of every year.

Speaker Change: Thanks.

Speaker Change: Yes.

Speaker Change: In terms of health care second.

Speaker Change: I think really it's two things one the growth of advanced imaging, which has higher margins also.

Speaker Change: Is that you know we've got some expenses in the first quarter that.

Speaker Change: Typically we don't have in the rest of the year the acceleration of the payroll taxes that we pay until the highly compensated folks maxed out.

Speaker Change: Although we don't talk about it as much we have a very good margins in our mammography program, which is about.

Speaker Change: If you take a look at all of the breast work that's done.

Speaker Change: We have.

Speaker Change: Breast imaging work that's done.

Speaker Change: Challenges related to them.

Speaker Change: Sure.

Speaker Change: Paint with the way we expense our bonuses from the prior year, the first quarter and then in general we front load our capex budget. So are our and our dsos lengthened slightly in the first quarter due to the.

Speaker Change: Redneck, it's about a third of our overall revenue and it's and it's good margin business, particularly as we improve.

Speaker Change: The <unk> adoption. So that's one part of it and the other part.

Speaker Change: That the reset of deductibles.

Howard Berger: Let me add to Mark's comments. I think some of the growth also is coming from the nine new centers that we opened in 2024. Those de novo centers, take some time to ramp up. And by 2025, since they will open throughout the year, I believe we're seeing some of that impact. And the reason I'm mentioning that is that we're developing 11 more centers here in 2025, of which I believe less than five of them have opened so far, maybe only three have opened so far in 2025. So we have eight more centers that will continue or contribute to revenue growth slated for this year, and then 11 more for next year, which are in the early stages of development.

Speaker Change: It has continued.

Speaker Change: We add to Mark's comments.

Speaker Change: I think some of the growth also is coming from the nine new centers that we opened in 2020 for those de Novo centers.

Speaker Change: Implementation of our tech live in AI programs, which.

Speaker Change: Clearly are done with a much lower cost and those helped drive volume and <unk>.

Speaker Change: Take some time to ramp up and buy.

Speaker Change: Decrease.

Speaker Change: Labor costs. So I think those two things are the primary drivers.

Speaker Change: 2025.

Speaker Change: Since they will open throughout the year I believe we're seeing some of that impact. The reason I mentioned and that is that we're developing it wasn't more centers here in 2025 of which I believe.

Speaker Change: For improving margins as we introduce or implement our AI tools through other parts of the business.

Speaker Change: That I described earlier from an operational standpoint.

Speaker Change: Less than five of them have opened so far maybe only three have opened so far are in.

Speaker Change: I think that that will also improve margins.

Speaker Change: In 2025, so we have eight more centers that will continue to contribute to revenue growth slated for this year and then 11 more for for next year, which are in the early stages of development. So.

<unk>.

Speaker Change: Might start seeing towards the end of the year, but certainly into 2026.

Speaker Change: Great and maybe just one last one from me I think the stock based compensation number increased meaningfully to $28 5 million in the quarter. That's close to last year's full year number can you help us understand the significant increase there is this the new run rate to consider or are there are nonrecurring items within that.

Howard Berger: So that, along with I think things like TechLive, now being up to 255 locations, whereas I think perhaps last year, we were just in the testing phase of this and maybe only a half a dozen. So we're really on TechLive. So we have ramped that up. And I think that that has helped significantly to improve our MRI revenue, despite the weather conditions and fires that we faced. And also, again, I'm going to mention the enormous growth and how proud we are about our whole PET-CT program. So I think those are the main drivers for the increased revenue side of this, which should translate into improved performance in the third quarter and then particularly in the, excuse me, second quarter, and then particularly in the third and fourth quarter.

Speaker Change: That along with I think things like Tech wise are now being up to 255 locations, whereas I think perhaps last year. We were just in the testing phase of this and maybe only a half a dozen so.

Speaker Change: Yes part of it was stock that vested that was given in the past years and given the increase in the stock price. This year relative to last year's first quarter that that added to the expense.

Speaker Change: We're really on tech lives. So we have ramped that up and I think that that has helped significantly to improve our MRI.

Speaker Change: Does it move despite the weather conditions and fires that we face.

Speaker Change: This year.

Speaker Change: <unk>.

Speaker Change: So we.

Speaker Change: And also again I'm going to mention the.

Speaker Change: We expect for the second third and fourth quarters.

Enormous growth and how proud we are about our whole pet Cte program.

Speaker Change: <unk> comps to be significantly lower than the first quarter.

Speaker Change: In addition, we brought on a whole bunch of new technology folks within our digital Health Division.

Speaker Change: So I think those are the main drivers for the increased revenue side of this which should translate into improve.

Speaker Change: And gave them.

Speaker Change: Improve performance.

Speaker Change: Grants that vest over time.

Speaker Change: The third quarter, and then particularly in Oh, excuse me second quarter, and particularly in the third and fourth quarters.

Speaker Change: Some of which were for bonuses for last year's performance of which our retention programs for the future and that hit also in the first quarter. So youll see our stock comp go down it'll be a fraction of where it was in the first quarter.

Mark Stolper: Right, maybe just to follow up on the profitability. I think the revised guidance implies that margins for the balance of the year would be about 16.4% or up about 60 basis points year over year. Can you help us understand what's driving that stronger than normal progression and why EBITDA margins for the balance of the year would be up? Thanks. I think really it's two things. One, the growth of advanced imaging, which has higher margins. Also, although we don't talk about it as much, we have very good margins in our mammography program, which is about, if you take a look at all of the breast imaging work that's done for RadNet, it's about a third of our overall revenue, and it's good margin business, particularly as we improve the EBCD adoption.

Speaker Change: Right and maybe just a follow up on the profitability of the I think the revised guidance implies that margins for the balance of the year would be about 16, 4% or up about 60 basis points year over year can you help us understand what's driving that stronger than normal progression and why EBITDA margins for the balance of the year would be up.

Speaker Change: For the remainder of the year.

Speaker Change: Great. Thanks for the color.

Speaker Change: Thank you and I have questions already comes from Larry Solow with CJS.

Speaker Change: Thanks.

Speaker Change: Yeah, I I think really it's two things one the growth of advanced imaging, which has higher margins also although we don't talk about it.

Speaker Change: Securities. Please go ahead.

Speaker Change: Great. Thank you good morning, guys. Thanks for all the color on this call so far.

Speaker Change: Couple of follow ups on the on the Medicare reimbursement just a couple of there. So I guess <unk> that in the cards for you mentioned kind of national coverage.

Speaker Change: As much we have very good margins in our mammography program, which is about if you take a look at all of the breast work that's done.

Speaker Change: Inevitably forgetting a Medicare code on the ABCD.

Speaker Change: Breast imaging work that's done for Redneck, it's about a third of our overall revenue and it's and it's good margin business, particularly as we improve our the E. B C. D adoption. So that's one part of it and the other part Oh.

Speaker Change: Hum.

Speaker Change: We are moving in that direction and then the second question just on Medicare would be.

Speaker Change: In terms of just the general physician fee schedule and CMS for 2026, Mark Obviously, you never know what the government but.

Mark Stolper: So that's one part of it, and the other part of it is continued... Implementation of our TechLive and AI programs, which clearly are done with a much lower cost, and those help drive volume and decrease the labor costs. So I think those two things are the primary drivers for improving margins. As we introduce or implement our AI tools through other parts of the business that I described earlier from an operational standpoint, I think that that will also improve margins, which we might start seeing towards the end of the year, but certainly into 2026.

Speaker Change: Current belief I believe is that rich.

Speaker Change: It is continued.

Speaker Change: To be held flat or.

Speaker Change:

Speaker Change: Through the physician fee schedule.

Speaker Change: Implementation of our check was an AI programs, which clearly are done with a much lower cost and those helped drive volume and a decrease of the labor cost. So I think those two things are the primary drivers are.

Speaker Change: Where we were shifting to general practitioners and not mistaken is that correct.

Speaker Change: Yes, So let me answer the second question first on the Medicare fee schedule.

Speaker Change: Obviously, we don't know what it's going to look like in 2026 typically Medicare comes out in the June or July timeframe with a proposal and then the industry lobbying groups and associations.

Speaker Change: For improving margins as we introduce or implement our AI tools through other parts of the business that.

Speaker Change: Negotiate that with CMS in the final rule comes out in November.

Speaker Change: That I described earlier from an operational standpoint.

Speaker Change: I think that that will also improve margins, which we.

Speaker Change: We have been facing.

Speaker Change: Some small cuts over the last five years and that goes back to.

Speaker Change: Might start seeing towards the end of the year, but certainly into 2026.

Speaker Change: When CMS substantially increase reimbursement for primary care practices by increasing these codes called the <unk> Valley evaluation and management codes. They did it on a budget neutral basis, meaning that.

Mark Stolper: Great, maybe just one last one from me. I think the stock based compensation number increased meaningfully to $28.5 million in the quarter. That's close to last year's full year number. Can you help us understand the significant increase there? Is this the new run rate to consider or are there non-recurring items within that? Thanks. Yeah, I'm part of it was stock that vested that was given in past years and given the increase in the stock price this year relative to last year's first quarter that that added to the expense this year. So we expect for the second, third and fourth quarters, the stock comp to be significantly lower than than the first quarter.

Speaker Change: Great and maybe just one last one for me I think the stock based compensation number increased meaningfully to $28 5 million in a quarter that is close to last year's full year number can you help us understand the significant increase there is this the new run rate to consider or are there are nonrecurring items within that.

Speaker Change: Theyre, taking reimbursement out of all the other specialties to pay for that.

Speaker Change: Yeah part of it was a stock that vested that was given in the past years and given the increase in the stock price. This year relative to last year's first quarter that that added to the expense. This.

Speaker Change: That large reimbursement that occurred almost five years ago. We believe that 2025 is the last year of the phase in of the pay for of that major reimbursement changed five years ago and so.

Speaker Change: This year.

Speaker Change: So we expect for the second third and fourth quarters on the stock comp to be significantly lower than that in the first quarter.

Speaker Change: We think that the outlook for Medicare reimbursement in the coming years is stable if not positive we hope that.

Mark Stolper: In addition, you know, we brought on a whole bunch of new technology folks within our digital health division and gave them, you know, grants that best over time, some of which were for bonuses for last year's performance of which, you know, our retention programs for the future and that hit also in the first quarter. So you'll see our stock comp go down. It'll be a fraction of where it was in the first quarter for the remainder of the. Great, thanks for the call. Thank you.

Speaker Change: Can advocate for reimbursement increases given the fact that.

Speaker Change: In addition, we.

Speaker Change: We brought on a whole bunch of new technology folks within our digital Health Division.

Speaker Change: The imaging is becoming a bigger part of the health care delivery system number one and number two.

Speaker Change: And gave them.

Speaker Change: I asked that vest over time.

Speaker Change: The cost of doing business has changed dramatically over the last.

Speaker Change: Some of which were for bonuses for last year's performance of which are our retention programs for the future and that hit also in the first quarter. So you'll see our stock comp go down it'll be a fraction of where it was in the first quarter.

Speaker Change: Half a decade, and hopefully that CMS recognizes that but we don't we honestly.

Speaker Change: Really know or have a really good feeling about it until they come out with their proposal.

Speaker Change: Im going to amplify a little bit on that.

Speaker Change: For the remainder of the year.

Speaker Change: Great. Thanks for the color.

Speaker Change: I think part of your question might have been about whether that there is still any opportunity in 2025 four.

Unidentified Moderator: Thank you and I have questions already comes from Larry Solow with CJS Securities. Please go ahead.

Larry Solow: And our next question today comes from Larry Solow with CJS Securities. Please go ahead. Thank you. Good morning, guys. Thanks for all the color on this call so far. Just a couple of follow-ups on the Medicare reimbursement, just a couple there.

Speaker Change: Mitigation of the cuts that went into place January one.

Speaker Change: Great. Thank you good morning.

Speaker Change: Got it thanks for all the color on this call. So far just a couple of follow ups on the on the Medicare reimbursement just a couple there.

Speaker Change: I'll make two comments on that number one nothing in our forecast includes.

Larry Solow: So the, I guess, EBCD, is that in the cards for, you mentioned, it's got a national coverage Inevitably forgetting a Medicare code on the EBCD. So far, we're moving in that direction.

Speaker Change: I guess, a b C. D is that in the cards for you mentioned kind of national coverage.

Speaker Change: Any changes in Medicare reimbursement for this year.

Speaker Change: Inevitably forgetting a Medicare code on the a B C D.

Speaker Change: <unk>.

Speaker Change: Whether it would be up or down I don't see it going down obviously because of fee schedule has already been adopted but in January there were supposed to be some.

Speaker Change: Software is moving in that direction and then the second question just on Medicare would be.

Mark Stolper: And then the second question, just on Medicare would be Unknown Attendee, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Larry Bland, Gregory Current belief, I believe, is that rates at least should be held flat or at least through the position fee schedule where we were shifting to general practitioners, if I'm not mistaken. Yeah, so let me answer the second question first on the Medicare fee schedule. You obviously, we don't know what it's going to look like in 2026. Typically, Medicare comes out in the June or July timeframe with a proposal, and then the industry lobbying groups and associations, you know, negotiate that with CMS and the final rule comes out in November.

Speaker Change: In terms of the.

Speaker Change: The general physician fee schedule and CMS for 2026, Mark obviously, you never know with the government but.

Changes.

Speaker Change: Fourth to the Congress too.

Speaker Change: Either mitigate the cuts or potentially.

Speaker Change: Current belief I believe is that rich.

Speaker Change: Them down to zero or maybe even increase them like you said.

Speaker Change: It would be held flat or where at least through the physician fee schedule where.

Speaker Change: But that's the second part of my comment is that prognosticating anything that.

Where we were shifting to general practitioners I'm not mistaken is that correct.

Speaker Change: Government will do on almost any level.

Speaker Change: Yeah. So let me answer the second question first on the Medicare fee schedule.

Speaker Change: As a real crapshoot so.

Speaker Change: You are obviously, we don't know what it's going to look like in 2026 typically Medicare comes out in the June or July time frame with a proposal and then the industry lobbying groups and associations are.

Speaker Change: Yeah, if there is a benefit.

Speaker Change: That will come this year.

Speaker Change: B of a positive and help us continue to meet or beat our guidance, but.

Speaker Change: There is no expectation that that's going to happen and I'll keep my fingers crossed as far as EDC adoption.

Speaker Change: Negotiate that with CMS in the final rule comes out in November.

Mark Stolper: We have been facing So I just want to start by saying that CMS has made some small cuts over the last five years, and that goes back to when CMS substantially increased reimbursement for primary care practices by increasing these codes called the E&M codes, evaluation and management codes. They did it on a budget-neutral basis, meaning that they're taking reimbursement out of all the other specialties to pay for that larger reimbursement that occurred almost five years ago. We believe that 2025 is the last year of the phase-in of the pay-for of that major reimbursement change five years ago.

Speaker Change: We have been facing.

Speaker Change: Adoption for reimbursement by Medicare.

Speaker Change: Some small cuts over the last five years and that goes back to.

Speaker Change: I think this is going to be the reverse of what happened when we went from <unk> to <unk> scanning.

Speaker Change: When CMS substantially increase reimbursement for primary care practices by increasing these codes called the E and M closed the valley.

Speaker Change: Module fee.

Speaker Change: And it was a very early adoption by Medicare of the increase.

Speaker Change: For people to providers to implement it because it was such a good technology.

Speaker Change: Uhm management codes, they did it on a budget neutral basis, meaning that.

Speaker Change: They're taking reimbursement out of all the other specialties to pay for that.

Speaker Change: They.

Speaker Change: Medicare CMS led that and then the adoption was by payers the grudgingly after that.

That large reimbursement that occurred almost five years ago. We believe that 2025 is the last year of the phase in of the pay for of that major reimbursement changed five years ago and so we.

Speaker Change: I see this as a reverse situation number one.

Speaker Change: Getting.

Speaker Change:

Mark Stolper: And so we think that the outlook for Medicare reimbursement in the coming years is stable, if not positive. We hope that we can advocate for reimbursement increases, given the fact that imaging is becoming a bigger part of the healthcare delivery system, number one. And number two, the cost of doing business has changed dramatically over the last half a decade, and hopefully that CMS recognizes that. But we honestly won't really know or have a really good feeling about it until they come out with their proposal.

Speaker Change: CMS to issue a new code.

Speaker Change: We think that the outlook for Medicare reimbursement in the coming years is stable if not positive we hope that we can advocate for reimbursement increases given the fact that the.

Speaker Change: For breast.

Speaker Change: Hi.

Speaker Change: Is difficult and problematic, while they have issued new codes for other.

Speaker Change: AI tools in the area of cardiac imaging.

Speaker Change: The imaging is becoming a bigger part of the health care delivery system number one and number two.

Speaker Change: Thyroid imaging, which you'll hear more about from us next quarter.

Speaker Change: The cost of doing business has changed dramatically over the last.

Speaker Change: And some other tools.

Speaker Change: Half a decade, and hopefully that CMS recognizes that but we don't we honestly, we wont really know or have a have a really good feeling about it until they come out with their proposal.

Speaker Change: But breath because of the consequences of this and the ubiquity of it I believe is going to be a difficult lift. So this may be a situation because of very positive conversations that we're having with commercial payers and and other type of payers and self insurers who.

Howard Berger: I'm going to amplify a little bit on that. I think part of your question might have been about whether or not there's still any opportunity in 2025 for mitigation of the cuts that went into place January 1st. I'll make two comments on that. Number one, nothing in our forecast includes any changes in Medicare reimbursement for this year. whether it would be up or down. I don't see it going down, obviously, because that fee schedule has already been adopted. But in January, there was supposed to be some changes put forth to the Congress to either mitigate the cuts or potentially bring them down to zero or maybe even increase them, like you said.

Speaker Change: I'm going to amplify a little bit on that.

Speaker Change: I think part of your question might have been about whether that there is still any opportunity in 2025 four.

Speaker Change: See this value.

Speaker Change: I believe they will adopt it.

The mitigation of the cuts that went into place January 1st.

And we have I think been very instrumental in establishing a price point, which is customer which is comfortable for our patients.

Speaker Change: I'll make two comments on that number one nothing in our forecast includes any changes in Medicare reimbursement for this year.

Speaker Change: Probably we will translate into something that sets a standard for the industry, but I believe it will come from the non governmental side of it.

Speaker Change:

Speaker Change: Whether it would be up or down I don't see it going down obviously cause a fee schedule has already been adopted but in January there were supposed to be some.

Speaker Change: This time.

As opposed to.

Speaker Change: In the past.

Speaker Change: Got you and just a couple on the detailed thoughts.

Speaker Change: Changes.

Speaker Change: Michelle.

Speaker Change: <unk> put forth to the Congress to either mitigate the cuts or potentially.

Speaker Change: On the top line it sounds like that implementation is advancing and I think you mentioned.

Speaker Change: Detailed operating system you.

Speaker Change: Bring them down to zero or maybe even increasing like you said, but that's the second part of my comment is that prognosticating anything that the government will do on almost any level.

Speaker Change: Do you have a pilot in place and it sounds like.

Howard Berger: But that's the second part of my comment is, is that prognosticating anything that this government will do on almost any level is a real crap shoot. So yeah, if there's a benefit that will come this year, that'll be a positive and help us continue to meet or beat our guidance. But there's no expectation that that's going to happen. And I'll keep my fingers crossed.

Speaker Change: Implementation across your centers.

Speaker Change:

Speaker Change: Has begun I'm, just trying to get a feel for that sort of targets and timeline for that.

Speaker Change: Our timeline for <unk>.

Speaker Change: As a real crapshoot so.

Speaker Change: The detail yet.

Speaker Change: Yeah, if there is a benefit.

Speaker Change: Sorry about.

The implementation of a full detailed system yes.

Speaker Change: That will come this year that'll be.

Speaker Change: B of a positive and help us continue to meet or beat our guidance, but there's no expectation that that's going to happen and I'll keep my fingers crossed as far as E. D. C D adoption for reimbursement by Medicare.

Speaker Change: Yes, we have begun pilot programs in our contact centers.

And.

Speaker Change: Scheduling.

Speaker Change: And phone and phone call bot to help our patients.

Howard Berger: As far as EDCD adoption for reimbursement by Medicare, I think this is going to be the reverse of what happened when we went from 2D to 3D scanning mammography. And there was a very early adoption by Medicare of the increase for people to providers to implement it because it was such a good technology. they Medicare CMS led that and then the adoption was by payers begrudgingly after that. I see this as a reverse situation. Number one, getting CMS to issue a new code for breast AI is difficult and problematic. While they have issued new codes for other AI tools in the area of cardiac imaging, thyroid imaging, which you'll hear more about from us next quarter, and some other tools.

Speaker Change: It's.

Speaker Change: The early results are very promising but.

Speaker Change: I think this is going to be the reverse of what happened.

Speaker Change: I'm confident that by year end most of all of the tools that we have will be in place.

Speaker Change: When we went from two D to treaty scanning.

Speaker Change: Mammography.

Speaker Change: And there was a very early adoption by Medicare of the increase.

Speaker Change: While we do that we obviously have.

Speaker Change: Expenses related to the implementation of it and continuing the older systems until we're ready to turnover.

Speaker Change: For people to pause.

Speaker Change: Riders to implement it because it was such a good technology.

Speaker Change: So I think the benefits from that which I mentioned in some of my other room.

Speaker Change: <unk>.

Speaker Change: They.

Speaker Change: Mark's, particularly as they might be reflected in improved margins are more likely to be seen in 2026 and they are in 2025.

Speaker Change: Medicare CMS led that and then the adoption was by payers the grudgingly after that.

Speaker Change: I see this as a reverse situation number one.

Speaker Change: Alright, I can only mention that we've got 400 centers.

Speaker Change: Getting.

Speaker Change:

Speaker Change: <unk> and <unk>.

Speaker Change: CMS to issue a new code.

Speaker Change: Heavy lift.

For breast.

Speaker Change: But we're up to the task.

Speaker Change: Hi.

Speaker Change: Alright, I appreciate all that color backups.

Speaker Change:

Speaker Change: It is difficult and problematic, while they have issued new codes for other AI.

Speaker Change: Thank you.

Speaker Change: Thank you and our next question today comes from Nuance Z.

Speaker Change: AI tools in the area of cardiac imaging thyroid imaging, which you'll hear more about from us.

Speaker Change: Please go ahead.

Speaker Change: Okay.

Speaker Change: Good morning. This is Brennan clay on for you on thanks for taking my questions first of all your previous previously talked about the recent trends in our capitation.

Speaker Change: Next quarter.

Speaker Change: And and some other tools.

Howard Berger: But breast, because of the consequences of this, and the ubiquity of it, I believe is going to be a difficult lift. So this may be a situation because of very positive conversations that we're having with commercial payors and other type of payors and self-insurers who see this value. I believe they will adopt it. And we have, I think, been very instrumental in establishing a price point, which is comfortable for our patients, and probably will translate into something that sets a standard for the industry. But I believe it will come from the non-governmental side of it this time, as opposed to in the past.

Speaker Change: Have you done any more visibility on the cadence of that trend for the remainder of the year.

Speaker Change: Well.

Speaker Change: Competition for us has been pretty stable.

Speaker Change: We're actually probably decreasing the relative to our revenue capitation as a percentage of this part of it is because the rest of our business.

Speaker Change: See this value.

Speaker Change: I believe they will adopt it.

Speaker Change: In other markets in Southern California is all fee for service, but also there our capitation contracts, where we have at the term elected to go into fee for service.

Speaker Change: And we have.

Speaker Change: <unk> been very instrumental in establishing a price point, which is custom which is comfortable for our patients and probably will translate into something that sets a standard for the industry, but I believe it will come from the non governmental side of it.

Speaker Change: Because the demand that we have is such that we can add.

Speaker Change: And we will not.

Speaker Change: Take reimbursement it doesn't allow us to continue to invest in our business both on the equipment and services side as well now as the AI. So we haven't lost any.

Speaker Change: At this time.

As opposed to.

Speaker Change: In the past.

Unknown Attendee: Gotcha.

Unknown Attendee: And just a couple on the Deep Health side. So I appreciate all the updates on the tech lab. It sounds like that implementation is advancing. And I think you mentioned on the Deep Health operating system, you have a pilot in place, and it sounds like... Implementation across your centers. has begun.

Speaker Change: Gotcha.

Speaker Change: A couple on the detailed thoughts.

Speaker Change: Appreciate all the updates on the on the top line. It sounds like that implementation is advancing and I I think you mentioned on the deep health operating system you.

Speaker Change: <unk> business from the transition away from capitation because.

Speaker Change: As illustrations are still coming to us, but at better reimbursement rates under a fee for service program that being said we do have.

Speaker Change: Do you have a pilot in place and it sounds like.

Speaker Change: Implementation across your centers.

Speaker Change:

Howard Berger: I'm just trying to get a feel for that and sort of targets and timelines for that. A timeline for the implementation of the DeepHealth system, yes, we've begun pilot programs in our contact centers and in scheduling and phone call bots to help our patients. The early results are very promising, but I am confident that by year-end, most of all of the tools that we have will be in place. While we do that, we obviously have expenses related to the implementation of it and continuing the older systems until we're ready to turn over. I think the benefits from that, which I mentioned in some of my other remarks, particularly as they might be reflected in improved margins, are more likely to be seen in 2026 than they are in 2025.

Speaker Change: The gone I'm, just trying to get a feel for that and sort of targets and timeline for that.

Speaker Change: More accommodating.

Speaker Change: Our timeline for western.

Speaker Change: Large capitation groups.

Speaker Change: Have chosen to stay with capitation.

Yeah, the detail yet.

Speaker Change: Sorry about that.

Speaker Change: Which we're benefiting from some significant increases in their application rates to make their overall.

Speaker Change: The implementation of a full detailed system, yes, we would be.

Speaker Change: We've begun pilot programs in our contact centers.

Speaker Change: Utilization on a fee for service basis more consistent with the rest of our business. So I think the application is still a very good business, but one that does not necessarily fit in to the bigger Radnet model.

Speaker Change: And then.

Speaker Change: Scheduling.

Speaker Change: <unk> phone and the phone call.

Speaker Change: It's to help our patients.

Speaker Change: It's.

Speaker Change: The early results are very promising, but I I'm confident that by year end most of all of the tools that we have will be in place.

Speaker Change: And there is more of where they are southern California phenomenon.

Speaker Change: We benchmark each quarter all of our contracts against the other payer classes or the other books of business that we have and if.

Speaker Change: While we do that we obviously have.

Speaker Change: Expenses related to the implementation of it and continuing the older systems until we're ready to turnover.

Speaker Change: If we fall behind where we need to be from a reimbursement standpoint relative to other books of business.

Speaker Change: So I think that the benefits from that which I mentioned in some of my other.

Speaker Change: We go back to the contracts, particularly when they're at the renewal process and we've had some.

Remarks, particularly as they might be reflected in improved margins are more likely to be seen in 2026 and they are in 2025, but I.

Howard Berger: I can only mention that we've got 400 centers to implement this in. It's a heavy lift, but we're up to it.

Speaker Change: I can only mention that we've got 400 centers to implement this in and it's a heavy lift but.

Speaker Change: There, we get significantly higher rates it doesn't guarantee us that we do 100% of that patient volume anymore. Because now that the risk is put back on the medical groups and they have the ability to refer that out to anyone.

Speaker Change: But we're up to the task.

Unknown Attendee: Peshawar.com Thank you.

Speaker Change: Alright, I appreciate all that color back to us.

Speaker Change: Thank you.

Speaker Change: Thank you and our next question today comes from Nuance Z with B Riley. Please go ahead.

Brandon Carney: And our next question today comes from Yuan Zhi with D. Reilly. Please go ahead. Good morning. This is Brandon Carney on for you on. Thanks for taking our questions. First, you previously talked about the recent trends in capitation. Have you gotten any more visibility on the cadence of that trend for the remainder of the year? Well, the capitation for us has been pretty stable. We're actually probably decreasing the relative to our revenue capitation as a percentage of this. Part of it is because the rest of our business in other markets than Southern California is all fee for service.

Speaker Change: They want but in the markets in California, obviously, we're the biggest player by far in the state there are markets where.

Speaker Change: Yeah.

Speaker Change: Hi, Good morning. This is Brennan clay on for you on thanks for taking my questions first of all you privilege previously talked about the recent trends in our capitation.

Speaker Change: We do the lion's share of the outpatient or the non hospital based imaging and we're still capturing a lot of that that.

Speaker Change: Have you done any more visibility on the cadence of that trend for the remainder of the year.

Speaker Change: That patient volume just that fee for service higher rates and so.

Speaker Change: Well.

Speaker Change: Competition for us has been pretty stable.

Speaker Change: My belief is that a number of these contracts will end up coming back to us in a year or two from now when they recognize that they were probably.

Speaker Change: We're actually probably decreasing the relative to a rather new capitation as a percentage of this part of it is because the rest of our business.

Speaker Change: Financially better off accepting higher capitation rates and shifting the risk and the burden of the utilization to Radnet, then to keeping that risk themselves and sending out the business at.

Speaker Change: In other markets in southern California.

Speaker Change: As all future service, but also there our capitation contracts, where we have at the term elected to go with a fee for service.

Howard Berger: But also, there are capitation contracts where we have, at the term, elected to go to fee for service because the demand that we have is such that we cannot and will not take reimbursement that doesn't allow us to continue to invest in our business, both on the equipment and services side, as well now as the AI. So, we haven't lost any real business from the transition away from capitation because those patients are still coming to us, but at better reimbursement rates under a fee for service program. That being said, we do have more accommodating large capitation groups that have chosen to stay with capitation, but which were benefiting from some significant increases in their capitation rate to make their overall utilization on a fee for service basis more consistent with the rest of our business.

Speaker Change: At higher fee for service rates so.

Speaker Change: We've been through a number of these cycles before and as you can see it's not impacting our overall revenue. It is just shifting revenue from the capitation portion to the.

Speaker Change: Because the demand that we have is such that we can add and we won't.

Speaker Change: Got.

Speaker Change: Take reimbursement it doesn't allow us to continue to invest in our business both on the equipment and service side as well now as the AI. So we haven't lost any real business from the transition away from capitation.

Speaker Change: The fee for service portion.

Speaker Change: Got it that's helpful. Thanks.

Speaker Change: And then.

Speaker Change: On the pet business can you help us understand the impact of pricing with the radiopharmaceutical imaging agents.

Speaker Change: The unit prices of imaging agents get slower.

Speaker Change: Because illustrations are still coming to us that a better reimbursement rates under a fee for service program that being said we do have.

Speaker Change: We have an overall benefit to Radnet operation.

Speaker Change: Yeah.

Speaker Change: I'll take that.

Speaker Change: Yes, what youre, what Youre really asking about is some of the newer esoteric tracers as opposed to <unk>, which was the.

Speaker Change: More accommodating.

Speaker Change: Large capitation groups that.

Speaker Change: Have chosen to stay with capitation.

Speaker Change: The Commoditized agent that we use in most of the oncological study with the new tracers for all saw Alzheimers and <unk>.

Speaker Change: Which we're benefiting from some significant increases in their application rates to make their overall.

Speaker Change: Utilization on a fee for service basis more consistent with the rest of our business. So I think the application is still a very good business.

Speaker Change: Prostate imaging are very expensive.

Mark Stolper: So, I think capitation is still a very good business, but one that does not necessarily fit in to the bigger RedNet model and is more of really a Southern California. Yeah, we benchmark each quarter, all of our contracts against the other payer classes or the other books of business that we have. And, you know, if we fall behind where we need to be from a reimbursement standpoint relative to other books of business, we go back to the contracts, particularly when they're, you know, at the renewal process. And, you know, we've had some, you know, challenging discussions over the past, you know, couple years, and which has led us to cancel a number of those capitation relationships.

Speaker Change: Essentially the reimbursement for that is on a pass through basis. So we don't.

Speaker Change: Make much money if at all in terms of marketing marking up.

Speaker Change: One that does not necessarily fit in to the bigger Radnet model.

Speaker Change: The radioactive tracer in that exam, so to the extent that.

Speaker Change: And there is more of where they are southern California phenomenon, yeah, we benchmark each quarter all of our contracts yet against the other payer classes or the other books of business that we have in.

Speaker Change: Prices go down and they should go down over time, because as the industry does more and more of prostate and these all size of Alzheimers imaging, we use this tracer more and more and more competition on the manufacturing side comes into play so we do expect.

Speaker Change: If we fall behind where we need to be from a reimbursement standpoint relative to other books of business.

Speaker Change: We go back to the contracts, particularly when they're at the renewal process and we've had some.

Speaker Change: These these tracers the pricing to come down over time.

Speaker Change: But for US there is really no profitability in these tracers.

Speaker Change: Challenging discussions over the past couple of years, and which has led us to cancel a number of those capitation relationships and as Dr. Berger said flip them to fee for service, where we get significantly higher rates. It doesn't guarantee us that we do 100% of that patient volume anymore, because now that.

Speaker Change: Alright got it just to follow up on that a bit further.

Mark Stolper: And as Dr. Berger said, flip them to fee-for-service, where, you know, we get significantly higher rates, it doesn't guarantee us that we do 100% of that patient volume anymore, because now that the risk is put back on the medical groups and they have to pay for it. They have the ability to refer that out to anyone, you know, that they want. But in the markets in California, obviously, we're the biggest player by far in the state. There are markets where, you know, we do the lion's share of the outpatient or the non-hospital based imaging, and we're still capturing a lot of that patient volume, just at fee-for-service higher rates.

Speaker Change: The growth in the pet business can.

Speaker Change: Can you give us any detail on the contribution of the numerous canceling Kissimmee R E beta versus the FDG scans that you mentioned.

Speaker Change: Any color there would be appreciated.

Speaker Change: So in the first quarter.

Speaker Change: The risk is is put back on the medical groups and they have the ability to refer that out to anyone who knows that they want but in the markets in California, obviously, we're the biggest player by far in the state there are markets where.

Speaker Change: Of 2025.

Speaker Change: The prostate and the.

Speaker Change: All Cymer studies, the amyloid studies represented about 19% of all of our or capitate. It.

Speaker Change: Excuse me all of our <unk> business and that's been growing.

Speaker Change: You know, we do the lion's share of the outpatient or the non hospital based imaging and we're still capturing a lot of that.

Speaker Change: Significantly.

Speaker Change: Year over year, particularly in the amyloid studies, where we're doing.

Speaker Change: That patient volume just that fee for service higher rates and so you know.

Mark Stolper: And so, you know, my belief is that a number of these contracts will end up coming back to us in a year or two from now when they recognize that they were probably financially better off accepting higher capitation rates and shifting the risk and the burden of the utilization to RadNet than to keeping that risk themselves and sending out the business at higher fee-for-service rates. So we've been through a number of these cycles before, and as you can see, it's not impacting our overall revenue. It's just shifting revenue from the capitation portion to the fee-for-service portion.

Speaker Change: Over 500 studies now are months.

Speaker Change: My belief is that a number of these contracts will end up coming back to us in a year or two from now when they recognize that they were probably.

Speaker Change: And those studies really started about a year year and a half ago as is the Medicare a regional administrators started.

Speaker Change: More frequently.

Speaker Change: Allowing for those studies to take place to qualify these patients on some of these newer drugs therapies. So its been a bit and of course prostate imaging.

Speaker Change: At higher fee for service rates. So we've been through a number of these cycles before and as you can see it's not impacting our overall revenue. It's just shifting revenue from the capitation portion to the to the fee for service portion.

Speaker Change: There's really been a big driver for us on the <unk> side and the two of those combined.

Speaker Change: Being about 19% of our business today.

Speaker Change: Today.

Speaker Change: Is really responsible for the more than 20% growth that we've been seeing quarter over quarter in our <unk> business.

Brandon Carney: Got it. That's helpful. Thanks.

Speaker Change: Got it thats helpful. Thanks.

Mark Stolper: And then on the pet business, can you help us understand the impact of pricing of the radio pharmaceutical imaging agents? If the unit prices of the imaging agents get lower, does it have an overall benefit to RadNet's operation? Yeah, I'll say I'll take that. Yeah, and what you're what you're really asking about is some of the newer esoteric tracers, as opposed to FDG, which was, you know, the, the commoditized agent that that we use in most of the oncological studies. The new the new tracers for also Alzheimer's and prostate imaging are very expensive. Essentially, the reimbursement for that is on a pass-through basis.

Speaker Change: And then.

Speaker Change: On the pet business. So can you help us understand the impact of pricing with the radiopharmaceutical imaging agents.

Speaker Change: Great. Thanks for taking our questions.

Speaker Change: Thank you and this concludes our question and answer session I would like to turn the conference back over to the company for any closing remarks.

Speaker Change: The unit prices of imaging agents get slower does it have an overall benefit to radnet operation.

Speaker Change: Thank you I guess I would like to take this opportunity to thank all of our shareholders for their continued support and the employees of Radnet for their dedication and hard work.

Speaker Change: Yeah, I'll say I'll take that.

Speaker Change: Yeah, and what you're what you're really asking about is some of the newer esoteric tracers as opposed to F. D. G, which was the the Commoditized agent that we use in most of the oncological study.

Speaker Change: Management will continue its endeavor to be a market leader that provides great services with an appropriate return on investment for all stakeholders. Thank you for your time today and I look forward to our next call.

The new tracers for also Alzheimers and.

Speaker Change: Thank you this concludes today's.

Speaker Change: Prostate imaging are very expensive SM.

Speaker Change: Conference call.

Speaker Change: Thank you all for attending today's presentation.

Speaker Change: Essentially the reimbursement for that is on a pass through basis. So we don't.

Speaker Change: Now disconnect your lines and have a wonderful day.

Howard Berger: So we don't make much money, if at all, in terms of marketing, marking up the radioactive tracer in that exam. So to the extent that the prices go down, and they should go down over time, because as the industry does more and more of, you know, prostate and these Alzheimer's, Alzheimer imaging, we use this tracer more and more and more competition on the manufacturing side comes into play. So we do expect these, these tracers, the pricing to come down over time. But for us, there's really no profitability in these tracers.

Speaker Change: Make much money if at all in terms of marketing marking up.

Speaker Change: The radioactive tracer in that exam, so to the extent that our prices go down and they should go down over time, because as the industry does more and more of.

Speaker Change: State and these are all size of Alzheimers imaging. We use this trace are more and more and more competition on the manufacturing side comes into play. So we do expect these.

Speaker Change: These are these tracers the pricing to come down over time.

Speaker Change: But for US there's really no profitability in these tracers.

Speaker Change: Alright got it just to follow up on that a bit for the growth in the pet business can.

Speaker Change: Can you give us any detail on the contribution of the newer scans like Jason there are E beta versus the FDG scans that you mentioned.

Howard Berger: Unknown Attendee, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Unknown Attendee, Gregory Sorensen, Cornelis Wesdorp, Sanjog Misra, Yeah, so in the first quarter of 2025, the prostate and the Alzheimer's studies, the amyloid studies represented about 19% of all of our capitated, excuse me, all of our pet CT business. And it's and that's been growing significantly, you know, year over year, particularly in the amyloid studies, where we're doing over 500 studies now a month. And those studies really started about a year, year and a half ago, as as the Medicare regional administrators started more frequently, allowing for those studies to take place to qualify these patients on some of these newer drug therapies.

Speaker Change: Any color there would be appreciated.

Speaker Change: So in the first quarter.

Speaker Change: Of 2025.

Speaker Change: The prostate and the Alzheimers.

Speaker Change: All Cymer studies, the amyloid studies represented about 19% of all of our our our calculated.

Speaker Change: Excuse me all of our Pepsi tea business and its end and that's been growing.

Speaker Change: Significantly.

Speaker Change: Our year over year, particularly in the amyloid studies, where we're doing over 500 studies now a month.

Speaker Change: And in those studies really started about a year year and a half ago as as the Medicare a regional administrators started.

Speaker Change: More frequently.

Speaker Change: Allowing for those studies to take place to qualify these patients on some of these newer drugs therapies. So its been a day and of course prostate imaging has really been a big driver for us on the <unk> side and the two of those combined being about 19% of our business.

Unknown Attendee: So it's been a big, and of course, prostate imaging has really been a big driver for us on the PET-CT side. And the two of those combined, being about 19% of our business today, is really responsible for the more than 20% growth that we've been seeing quarter over quarter in our PET-CT. I agree. Thanks for taking our question. Thank you.

Speaker Change: Today is really responsible for the more than 20% growth that we've been seeing quarter over quarter in our pet business.

Speaker Change: Hi, great. Thanks for taking our questions.

Unknown Attendee: And this concludes our question and answer session. I'd like to turn the conference back over to the company for any closing remarks. Thank you. Again, I would like to take this opportunity to thank all of our shareholders for their continued support and the employees of RadNet for their dedication and hard work. Management will continue its endeavor to be a market leader that provides great services with an appropriate return on investment for all Thank you for your time today and I look forward to our next Thank you.

Unidentified Moderator: Thank you and this concludes our question and answer session I'd like to turn the conference back over to the company for any closing remarks.

Speaker Change: Thank you for giving them like to take this opportunity to thank all of our shareholders for their continued support and the employees of Radnet for their dedication and hard work.

Speaker Change: Thank.

Q1 2025 RadNet Inc Earnings Call

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