RadNet (RDNT, Financial) shares soared by 21% as the diagnostic imaging company reached a new all-time high following its Q3 report. The company posted a 38.5% year-over-year increase in adjusted EPS to $0.18, recovering from a slight EPS miss in Q2. Revenue also impressed, climbing 14.7% year-over-year to $461.1 million, exceeding analyst expectations. Additionally, RadNet announced a collaboration focused on AI with GE HealthCare (GEHC, Financial).

• RadNet is experiencing high demand and patient backlogs, prompting expansion with new imaging centers. It operates nearly 400 outpatient centers and has opened five new ones this year, with three more expected by year-end and 15 planned for 2025.
• As the largest owner/operator of diagnostic imaging centers in the US, RadNet has quadrupled in size over 15 years. About 37% of its centers are joint ventures with major hospital systems, providing significant referrals. It also benefits from digital health revenue streams, including AI and radiology software.
• Approximately half of imaging occurs at hospitals and half at outpatient centers like RadNet. Hospitals often charge 200-500% more than RadNet, prompting insurers to shift business to more cost-effective sites, benefiting RadNet.
• RadNet is enhancing consumer access to imaging by partnering with Walmart for mammogram screenings through its MammogramNow service. Its DeepHealth segment focuses on AI to improve radiologist efficiency and reduce biopsies.
• The GE HealthCare collaboration aims to innovate and expand AI in imaging, combining GE HealthCare’s expertise, RadNet’s care delivery experience, and DeepHealth’s AI-powered health informatics.

Overall, RadNet delivered an impressive quarter, with notable EPS and revenue growth. The industry's shift towards lower-cost imaging options aligns with RadNet's services. The GE HealthCare partnership boosts RadNet's credibility and visibility, capturing investor interest.