Growth, downturn lead to Axcess Medical Imaging filing bankruptcy - Triangle Business Journal:

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Axcess Medical, which owns and operates, or manages, imagingf centers on Florida’s west coast, said in a release that the filing would strengthebn its financial position and ensure continued operations andfuture growth. The company said it is working to complete debtor in possessiobn financing to support its operations and to help in completinv its strategicrestructuring process. Douglas Badertscher was named chief restructuring officee to lead the company through thetransition locations, including seven locations acquired in April, will continue to operate and conducy business as usual without interruption, the company said.
Documentz filed in for the Middls District of Florida outline a story of rapicd growth amid decliningreimbursement rates. Axcess founded by Dr. Stephen Miley and Dr. John began operations in 2001 with a singlew facility in Venice and then expanded into Bradentoh in 2004 and Sarasotqain 2006. In May 2008, Axcess Medical completee a reverse merger into apubliv over-the-counter bulletin board shell company and obtained a $1 millionj convertible note to fund some of its operationws and going-public costs. In April, Axceses Medical closed on the acquisition of seven moreMRI centers, after agreeing to pay $200,000 in cash and to assume $3.
8 millionn in debt, a filing with the The centers are in Clearwater, Bradenton, Pinellas Park, Port Charlotte, Jacksonville and Titusville. However, Axceszs Medical was not sufficiently capitalizecd to withstand the combination of rapid expansion at the same time revenurwas declining, the bankruptcy filing said. Revenuwe dropped for a combination of thefiling said. The federal Deficitt Reduction Act of 2005 negativelyu impacted Medicare rates with commercial insurance contracts tied to Medicare ratesfollowing suit. The downturhn in the economy caused the volume of scans to drop at Axcesw Medical and otherimaging firms.
Additionally, Axcess Medicao has experienced longer collection as it has not yet receivee receivables generated after the purchase of the MRI centers in Axcess Medical owes creditorsabout $16 .1 million and has assetxs of $4.4 million. The compan y had $11 million in revenue last but expects its annual revenue to increase byabouty $9.7 million with the acquisition of the MRI the bankruptcy filing said.