DVI, a medical equipment and receivables financing company based in Irvine, Calif., announced the formation of Medical Equipment Credit. MEC is a joint venture formed to provide medical equipment financing to the Pacific Rim. DVI will own 40% of the business, while Philips Medical Systems International and Philadelphia International Investment Corp., a CoreStates Bank subsidiary, will own 40% and 20%, respectively, said Michael A. O'Hanlon, DVI's president and chief operating officer in DVI's Doylestown, Pa., office. Asian and Pacific countries are expected to account for some 50% of the world market for magnetic resonance imaging and other high-end radiology equipment by 1997, up from 30% in 1991, O'Hanlon said.
Diagnostic Health Services, a Dallas-based imaging company, said it will acquire Advanced Diagnostic Imaging and Pediatric Echocardiographic Diagnostics, two privately owned diagnostic companies that operate in the Dallas/Fort Worth area. Terms of the transactions, which will be exchanges of stock, weren't disclosed. ADI provides cardiovascular ultrasound diagnostics, and PEDI focuses on neonatal cardiology diagnostics. DHS has grown significantly through several acquisitions during the past five years, said Max W. Batzer, the company's chairman and chief executive officer. In August it completed the purchase of the Midwestern ultrasound and nuclear medicine operations of San Diego-based Medical Imaging Centers of America. Terms weren't disclosed. Meanwhile, DHS reported an 89% jump in net income for the third quarter ended Sept. 30 to $337,000, or 6 cents per share, from $177,000, or 4 cents per share, in the year-ago quarter. Revenues grew 62% to $4.3 million. For the nine months, net income jumped 137% to $853,000, or 17 cents per share, compared with $359,000, or 8 cents per share, in the year-ago period. Revenues rose 60% to $11.3 million. DHS is an outsource manager of radiology and cardiology departments and shared ultrasound/nuclear imaging services.
Shared Medical Systems, a Malvern, Pa.-based healthcare information systems vendor, reported its net income for the third quarter ended Sept. 30 increased 12% to $10 million, or 42 cents per share, from $8.9 million, or 38 cents per share, in the year-ago quarter. Revenues increased 22% to $169 million. For the nine months, net income increased 12% to $29 million, or $1.24 per share, from $26 million, or $1.12 per share, in the year-ago period. Revenues climbed 18.5% to $470 million. The financial results include the operating results of the MedSeries software division acquired from a subsidiary of GTE Corp. in September 1994.