Alliance Imaging sales, earnings show DRA impact
The effects of reimbursement reductions related to the Deficit Reduction Act of 2005 (DRA) and Medicare Part B HOPPS reimbursement rate reduction for PET and PET/CT imaging procedures which came into effect for services furnished on or after January 1 this year negatively impacted fiscal 2007 second quarter (end-June 30) results for diagnostic imaging services provider Alliance Imaging of Anaheim, Calif.
For the period, revenue decreased 3.1 percent to $111.8 million, compared with revenue of $115.3 million realized in the second quarter of fiscal 2006. Alliance’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $42 million in the second quarter, a 6.4% decrease, compared with $44.9 million in the same quarter a year ago.
The firm said that it reaffirms its full year 2007 guidance ranges, which are projected revenues of $431 million to $443 million and adjusted EBITDA of $154 million to $162 million.
For the period, revenue decreased 3.1 percent to $111.8 million, compared with revenue of $115.3 million realized in the second quarter of fiscal 2006. Alliance’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $42 million in the second quarter, a 6.4% decrease, compared with $44.9 million in the same quarter a year ago.
The firm said that it reaffirms its full year 2007 guidance ranges, which are projected revenues of $431 million to $443 million and adjusted EBITDA of $154 million to $162 million.