• AI
  • Molecular Imaging
  • CT
  • X-Ray
  • Ultrasound
  • MRI
  • Facility Management
  • Mammography

DHS, Medical Alliance call off merger

Article

The drawn-out attempt at a union between imaging services provider Diagnostic Health Services and Medical Alliance is now over. The firms had announced that they would merge in February (SCAN 3/3/99), and then decided to retool the merger in May

The drawn-out attempt at a union between imaging services provider Diagnostic Health Services and Medical Alliance is now over. The firms had announced that they would merge in February (SCAN 3/3/99), and then decided to retool the merger in May to make it more acceptable to shareholders, whose response to the terms of the original agreement (SCAN 5/26/99) had been tepid. In the end, however, the deal collapsed because the companies’ boards of directors weren’t confident they could deliver the anticipated value of the deal to their shareholders, according to Brad Hummel, president and CEO of DHS.

DHS had publicly announced in 1998 that it was seeking a merger partner, and shortly thereafter found Medical Alliance, a shared-services provider of office-based surgical procedures.

Now that the deal has ended, DHS will first focus on ways to improve its balance sheet, specifically the restructuring of the firm’s senior and subordinated debt positions, Hummel said.

“The principal problem with DHS is that it’s overleveraged,” Hummel said. “There’s nothing wrong with our business model. But the debt has created a cash constraint.”

Once the restructuring has been accomplished, DHS will investigate all options to raise more capital, he said. As a result of the merger termination, DHS will record a one-time charge of approximately $725,000 in its second quarter (end-June), while Medical Alliance will have a charge of approximately $850,000. In other developments, DHS was informed that the NASDAQ Stock Market had delisted DHS stock from trading on the NASDAQ National Market, effective at the close of trading on Aug. 11. The firm’s shares will now trade on the Over the Counter bulletin board.

Related Videos
Where the USPSTF Breast Cancer Screening Recommendations Fall Short: An Interview with Stacy Smith-Foley, MD
A Closer Look at MRI-Guided Transurethral Ultrasound Ablation for Intermediate Risk Prostate Cancer
Improving the Quality of Breast MRI Acquisition and Processing
Can Fiber Optic RealShape (FORS) Technology Provide a Viable Alternative to X-Rays for Aortic Procedures?
Does Initial CCTA Provide the Best Assessment of Stable Chest Pain?
Making the Case for Intravascular Ultrasound Use in Peripheral Vascular Interventions
Can Diffusion Microstructural Imaging Provide Insights into Long Covid Beyond Conventional MRI?
Assessing the Impact of Radiology Workforce Shortages in Rural Communities
Emerging MRI and PET Research Reveals Link Between Visceral Abdominal Fat and Early Signs of Alzheimer’s Disease
Reimbursement Challenges in Radiology: An Interview with Richard Heller, MD
Related Content
© 2024 MJH Life Sciences

All rights reserved.