Radnet (RDNT)

Risks

• If our contracted radiology practices terminate their agreements with us, our business could substantially diminish.
• If our contracted radiology practices, including the Group, lose a significant number of their radiologists, our financial results could be adversely affected.
• Our ability to generate revenue depends in large part on referrals from physicians.
• We may become subject to professional malpractice liability, which could be costly and negatively impact our reputation and business.
• We may not receive payment from some of our healthcare provider customers because of their financial circumstances.
• Capitation fee arrangements could reduce our operating margins.
• Changes in the method or rates of third-party reimbursement could have a negative impact on our results
• Disruption or malfunction in our information systems could adversely affect our business.
• Technological change in our industry could reduce the demand for our services and require us to incur significant costs to upgrade our equipment.
• We face various risks related to health epidemics and other outbreaks, which may have a material adverse effect on our business, financial condition, results of operations and cash flows.
• We experience competition from other diagnostic imaging companies and hospitals, and this competition could adversely affect our revenue and business.
• Our success depends in part on our key personnel and loss of key executives could adversely affect our operations.
• Our failure to successfully, and in a timely manner, integrate acquired businesses and/or new lines of businesses could reduce our profitability.
• We may not be able to successfully grow our business, which would adversely affect our financial condition and results of operations.
• A restriction in our ability to make capital expenditures would restrict our growth and could adversely affect our business.
• The regulatory framework in which we operate is uncertain and evolving.
• We may be impacted by eligibility changes to government and private insurance programs.
• State and federal anti-kickback and anti-self-referral laws may adversely affect income.
• Complying with federal and state regulations is an expensive and time-consuming process, and any failure to comply could result in substantial penalties.
• If we fail to comply with various licensure, certification and accreditation standards, we may be subject to loss of licensure, certification or accreditation, which would adversely affect our operations.
• Our agreements with the contracted radiology practices must be structured to avoid the corporate practice of medicine and fee-splitting.
• Some of our imaging modalities use radioactive materials, which generate regulated waste and could subject us to liabilities for injuries or violations of environmental and health and safety laws.
• Adverse changes in general domestic and worldwide economic conditions and instability and disruption of credit markets could adversely affect our operating results, financial condition, or liquidity.
• Business disruptions and interruptions due to external events beyond our control can adversely affect our business, financial condition or results of operations.
• Possible volatility in our stock price could negatively affect us and our stockholders.
• Our substantial debt could adversely affect our financial condition and prevent us from fulfilling our obligations under our outstanding indebtedness.
• We may not be able to finance future needs or adapt our business plan to changes because of restrictions placed on us by our credit facilities and instruments governing our other indebtedness.
• Our business could be adversely impacted if there are deficiencies in our disclosure controls and procedures or internal control over financial reporting.
• We are subject to tax audits, challenges to our tax positions, or adverse changes or interpretations of tax laws.
• We may be required to recognize an impairment of our goodwill or other indefinite-lived intangible assets, which could have an adverse effect on our financial position and results of operations.
• Because we have high fixed costs, lower scan volumes per system could adversely affect our business.
• Provisions of the Delaware General Corporation Law and our organizational documents may discourage an acquisition of us.