Leading Radiology Forward
Capitated Contracts Create a Barrier to Entry
RadNet has over 35 capitated medical groups California with whom we work
We receive a per-member-per-month fixed price for exclusively providing outpatient imaging to over
1,900,000 lives in CA (HMO commercial, Medicare Advantage and Managed Medicaid lives)
Began first east coast contract in Oct. 2018 with Emblem/AdvantageCare Physicians with over
150,000 lives
Exclusive nature of capitated contracts provides revenue stability and predictability
On average, RadNet's arrangements are over 10 years old
• RadNet has experienced extremely high contract renewal rate
• History of rate increases (generally 1%-3% annual increases)
•
Eliminates costs associated with receivables, bad debt expense and billing costs
Capitation contracts create "pull-through" revenue
• Doctors from capitated physician groups often refer to us their non-capitated patients
(discretionary business)
Risk of utilization is borne by RadNet and managed through the Utilization Management Division
RadNet.
Leading Radiology Forward
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