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

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Axcess Medical, which owns and operates, or imaging centers on Florida’s west said in a release that the filinh would strengthen its financial position and ensure continued operations andfuture growth. The company said it is workingf to complete debtor in possession financing to support its operationas and to help in completing its strategicfrestructuring process. Douglas Badertscher was named chievf restructuring officer to lead the company throughb thetransition period. locations, including sevenn locations acquiredin April, will continue to operate and conduct business as usual without interruption, the company said.
Documentsx filed in for the Middle Districf of Florida outline a story of rapid growty amid decliningreimbursement rates. Axcesa Medical, founded by Dr. Stephen Milety and Dr. John Uphold, beganm operations in 2001 with a singlw facility in Venice and then expanded into Bradenton in 2004 and Sarasotqain 2006. In May 2008, Axcess Medical completeed a reverse merger into apublic over-the-counter bulletin board shell company and obtained a $1 millionh convertible note to fund some of its operations and going-publidc costs. In April, Axcess Medical closedr on the acquisition of seven more MRI after agreeing topay $200,000 in cash and to assume $3.
8 million in debt, a filing with the The centers are in Clearwater, Bradenton, Pinellaz Park, Naples, Port Charlotte, Jacksonville and Titusville. However, Axcesx Medical was not sufficiently capitalizedc to withstand the combination of rapid expansion at the same time revenuewwas declining, the bankruptcy filing Revenue dropped for a combinatio n of reasons, the filint said. The federal Deficit Reductiomn Act of 2005 negatively impacted Medicar rates with commercial insurance contracts tied to Medicare rateefollowing suit. The downturn in the economy caused the volume of scand to drop at Axcess Medical and otherrimaging firms.
Additionally, Axcess Medical has experienced longeercollection cycles, as it has not yet receivedr receivables generated after the purchase of the MRI centerd in April. Axcess Medical owes creditorswabout $16 .1 million and has assetxs of $4.4 million. The companyt had $11 million in revenue last but expects its annual revenue to increase byabout $9.7 million with the acquisitiobn of the MRI the bankruptcy filing said.