Medical Alliance and Diagnostic Health Services last week called off their planned $22 million merger, which their boards approved in May.
"Despite efforts by both parties to arrive at a satisfactory conclusion, the boards of directors of both companies determined that it was no longer feasible to pursue this transaction," Paul Herchman, chief executive officer of Medical Alliance, said in a written statement last week.
Diagnostic Health Services, Dallas, provides contract radiology and cardiology services. Medical Alliance, Irving, Texas, provides technology and surgical services.
As a result of the canceled deal, Medical Alliance will take a one-time charge of about $850,000 for the second quarter ended June 30. Diagnostic Health Services will take a $725,000 charge for the same period.