RadNet (RDNT) investor relations material

Industry trends and challenges

• Healthcare is undergoing major transition due to labor shortages and a shift from hospital to ambulatory care, increasing the need for efficiency and cost reduction.

• There is a growing emphasis on proactive prevention and early disease detection, with artificial intelligence (AI) playing a central role in this transformation.

• Radiology and imaging are at the forefront of digital innovation, leveraging AI for earlier and more accurate diagnoses.

• AI-driven tools are being developed to predict disease risk and improve patient experience, aiming to reduce stress and enhance outcomes.

• The industry remains highly fragmented, presenting significant opportunities for consolidation and growth.

Business model and operations

• Operates over 400 diagnostic imaging centers in eight states, focusing on densely populated areas for operational efficiency.

• Multimodality centers offer a full range of imaging services, with advanced studies like MRI and CT driving higher revenue and margins.

• Maintains a diversified payer mix, including Medicare, commercial insurance, and capitated risk arrangements.

• Expanding through acquisitions and joint ventures with major health systems, with 37% of centers in such partnerships and plans to exceed 50% in five years.

• Consistent top-line growth over 15 years, with a compound annual growth rate above 8.5%.

Digital health and AI strategy

• Digital health segment, branded as DeepHealth, is a global leader in AI-powered radiology informatics, with 22 FDA-cleared and 15 CE-marked products.

• The segment addresses operational challenges like no-shows, workforce shortages, and clinical variability through cloud-native, modular solutions.

• DeepHealth OS integrates AI and informatics across five domains, including operations, patient engagement, population health, diagnostics, and remote collaboration.

• Strong symbiosis between services and digital health enables rapid innovation, prototyping, and commercialization, with over 2,000 external customers.

• Recent deployments include remote scanning, clinical AI in mammography and thyroid, cloud-native PACS, and digital onboarding, with further rollouts planned through 2027.