InSight posts another profitable quarter

During a period of uncertainty over new Medicare rules (SCAN, 5/24/00), InSight Health Services of Newport Beach, CA, reported a profit for the quarter ended June 30 and for the year.

The company reported revenue for the year up 16% to $188.6 million from $162 million for the year ended June 30. Total revenue for the previous quarter was up 10% to $48.6 million from $44.4 million for the previous quarter.

InSight’s profit for the year increased 17% to $7.2 million, compared with $6.1 million for the previous year. Profit for the quarter ended June 30 increased 33% to $2.6 million, compared with $1.9 million for the previous quarter. The company said a major reason has been a reduction in expenses.

The new Medicare rules that went into effect Aug. 1 threaten to cut payments for hospital outpatient radiology procedures (SCAN 5/10/00). Nonhospital providers, however, may be reimbursed the full amount for outpatient radiology services, a boon to some imaging companies.

One factor causing problems for several large imaging services companies is that the competitive environment for centers varies considerably from region to region.

InSight operates imaging centers in 30 U.S. states (including a major presence in Texas).