- March 7, 2014
FORT MYERS — Revenues at Radiation Therapy Services fell 1.2% this quarter from lower Medicare reimbursements and fewer prostate-cancer treatments, but the company says it plans to continue making acquisitions.
Radiation Therapy, which operates 131 radiation-treatment centers, reported a net loss of $19.5 million on revenues of $178.1 million in the quarter ending June 30. That compares with a net loss of nearly $19 million on revenues of $180.3 million in the same quarter one year ago.
In a statement, Radiation Therapy President and CEO Daniel Dosoretz says that despite the 9% cut in Medicare reimbursements, the number of treatments grew 3.2%.
Meanwhile, Dosoretz says Radiation Therapy will continue to make acquisitions. For example, it is planning to acquire OnCure Holdings for $125 million, which would add another 34 locations in Florida, California and Indiana. OnCure is currently in bankruptcy reorganization and the deal is pending court approval.
“During the quarter, we completed the acquisition of Premiere Radiation Oncology/Specialists in Urology, a 14-physician, five-center practice in the Southwest Florida market that offers significant synergy opportunities,” Dosoretz says in the statement. “We also closed the acquisition of a majority interest in a newly formed strategic joint venture in Casa Grande, Ariz., which will enable us to combine resources for improved patient care, better efficiency and to leverage a partnership with a local hospital. Internationally, we purchased a center in Tijuana, Mexico, in July which we have closed and after refurbishing will re-open in early 2014 as this large geography's premiere source for advanced radiation therapy.”
In total, Radiation Treatment operates 131 treatment centers, including 100 centers located in 15 U.S. states, strategically clustered in 28 local markets. The company also operates 31 centers located in six countries in Latin America.