Radiation Therapy Services posts a $91 million net loss in the third quarter.
FORT MYERS — Radiation Therapy Services, an operator of cancer-treatment centers, posted a net loss of $91 million on revenues of $168 million in the three months ended Sept. 30.
Those results compared with a net loss of $241 million on revenues of $154 million in the same quarter in 2011.
Radiation Therapy, which posted preliminary results Nov. 5, says in a statement that the net loss in both years was “attributable to revisions of the company's financial forecasts largely as a result of reductions in reimbursement, primarily to write down goodwill, trade name and an investment in a joint venture to their implied fair values, as well as continued depressed economic conditions in the U.S.”
In addition, the company cited declines in government reimbursements and new guidelines that recommend against prostate-cancer screening for some men. “We continue to also focus on expansion opportunities in Latin America, which will also help to offset the rate reductions in the U.S.,” says Daniel Dosoretz, Radiation Therapy president and CEO, in a statement.
Still, revenues rose because of recent acquisitions in California, North Carolina, Florida and Argentina. In total, Radiation Therapy operates 126 treatment centers, including 94 centers located in 15 U.S. states, clustered in 28 local markets. The company also operates 31 centers located in six countries in Latin America and one center located in India.