AmeriScan, the whole-body scanning business that recently began to offer breast MRI, has closed all but two of its nationwide locations.
Barely a year ago, whole-body scanning pioneer CT Screening International (CTSi) shuttered its 12 nationwide facilities. At the time, AmeriScan announced plans to add 10 new centers to its 12 existing facilities.
But the future looked even bigger than that. In the May issue of Business 2.0, CEO Dr. Craig Bittner predicted there would be 500 AmeriScans. More recently, the company added virtual prostate cancer scans and offered franchise opportunities to providers interested in screening services.
Within the last few weeks, however, word spread about the sudden closing of facilities, including those in Chicago and Philadelphia. The company's Web site offers no word on the closures but lists only the two viable locations: Glendale, AZ, and San Jose, CA. Bittner could not be reached for comment.
A call to either of the locations was answered by the same man in Glendale who said no one was there: no doctors, no technologists, and no customers. He said the other facilities began to close several months ago. The director of marketing was gone as well.
Some industry analysts have said that the prevalent screening center business model has flaws that include expanding too quickly in a sliding economy, which can leave a company crushed with debt. A volatile market has made many of the boomers targeted by AmeriScan skittish about spending upwards of $500 per scan.
The business also relies heavily on advertising to continually attract new customers who are not doctor-referred. Some reports have estimated that screening centers spend as much $2500 in certain regions to acquire a customer.
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