Core Viewpoint - RadNet, Inc. has acquired Alpha RT, enhancing its remote imaging portfolio and addressing the growing demand for radiology services amid a shortage of imaging technologists [1][2] Company Overview - RadNet is a leading provider of diagnostic imaging services in the US, operating 405 outpatient imaging centers across several states including California, New York, and Texas [3] - The company employs approximately 11,000 team members, including radiologists and technologists, and offers a range of services including radiology information technology and AI solutions under the DeepHealth brand [3] Acquisition Details - The acquisition of Alpha RT integrates its staffing services and training programs with RadNet's existing TechLive™ remote scanning technology, creating a comprehensive remote-imaging portfolio [1][2] - This strategic move aims to empower imaging centers to manage increasing procedural volumes while maintaining high patient care standards [2] Technology and Services - DeepHealth's TechLive™ technology allows expert technologists to remotely perform or supervise various imaging scans, achieving a 0.06% recall rate and a 42% reduction in MRI room closures [5][11] - Alpha RT provides AI-powered safety monitoring, on-demand staffing services, specialized training programs, and intelligent resource optimization to enhance operational efficiency [5] Market Context - The acquisition responds to rising patient demand for radiology services and a concurrent shortage of imaging technologists, presenting significant challenges for imaging providers [2] - DeepHealth's solutions are utilized by thousands of radiologists globally, aiming to improve disease detection and operational efficiency in healthcare [6]

Core Insights - Baron Health Care Fund reported a 5.39% increase in Q3 2025, slightly outperforming the Russell 3000 Health Care Index which gained 5.05% [1] - The fund's performance was impacted by stock selection and negative effects from active sub-industry allocations and cash holdings during a rising market [1] Fund Performance - The Baron Health Care Fund's Institutional Shares rose 5.39% in Q3 2025 [1] - The Russell 3000 Index gained 8.18% during the same period [1] - Solid stock selection was offset by negative impacts from allocations and cash holdings [1] Company Highlight: RadNet, Inc. - RadNet, Inc. is the largest operator of outpatient diagnostic imaging services in the U.S. [3] - The company's stock closed at $77.82 on November 3, 2025, with a market capitalization of $6 billion [2] - RadNet's shares gained 14.36% over the last 52 weeks, despite a slight decline of 0.12% in the last month [2] Financial Performance of RadNet, Inc. - RadNet reported an 8.4% revenue growth and a 12.3% increase in EBITDA, exceeding consensus estimates by 2% and 6% respectively [3] - Total imaging volume grew by 4.9%, with same-store advanced imaging growth accelerating to 6.6% [3] - The Digital Health segment saw revenue increase by approximately 31% [3] Future Outlook for RadNet, Inc. - Management anticipates a 3.3% Medicare rate hike in 2026 and plans to expand MRI and ultrasound capacity through AI upgrades [3] - The company has a strong pipeline with 11 new sites planned for both 2025 and 2026 [3] - Long-term conviction in RadNet is supported by demographic trends and operational scale [3]

Core Insights - RadNet, Inc. is hosting an Investor Day on November 11, 2025, focusing on advancements in healthcare imaging through innovation and technology [1][2][3] Company Overview - RadNet, Inc. is a leading provider of outpatient diagnostic imaging services in the U.S., operating a network of 405 imaging centers across several states including Arizona, California, and Texas [4] - The company employs over 11,000 team members, including contracted radiologists and technologists [4] Event Details - The Investor Day will feature presentations from senior executives and clinical leaders, discussing strategic priorities, market opportunities, and innovation roadmap [3] - The agenda includes opening remarks, financial overview, expert clinical spotlights, digital health division presentation, and a value-creation plan towards 2028 [5] Product Offerings - RadNet's product portfolio includes: - Breast Suite: Solutions for enhancing breast cancer diagnosis [5] - Diagnostic Suite: An imaging platform integrating PACS, multi-modality viewing, and AI-empowered clinical processes [5] - TechLive™: A remote scanning and radiology management solution for multi-site operations [5] - Patient Engagement: Solutions for improving patient scheduling and online payments [5]

Performance Overview - Baron Health Care Fund increased 5.39% in Q3 2025, outperforming the Russell 3000 Health Care Index's 5.05% but underperforming the Russell 3000 Index's 8.18% [2][3] - Since inception on April 30, 2018, the Fund has achieved an annualized return of 9.30%, compared to 8.68% for the Benchmark and 14.48% for the Index [2][4] Key Contributors - Strong stock selection in biotechnology, particularly from argenx SE and Insmed Incorporated, contributed significantly to the Fund's performance [5] - Argenx's Vyvgart sales exceeded expectations, while Insmed's Brinsupri received U.S. approval, representing a $5 billion-plus opportunity [5][16] - Investments in health care services, particularly RadNet, Inc. and Heartflow, Inc., also added value, with RadNet's shares rising due to strong quarterly results and guidance [6][7][17] Key Detractors - Poor stock selection in health care equipment, particularly from Masimo Corporation and Boston Scientific Corporation, negatively impacted performance [8][9] - Eli Lilly's stock fell due to disappointing Phase 3 trial results for orforglipron, alongside broader regulatory uncertainties affecting the pharmaceutical sector [12][21] - The Fund's underweight position in Johnson & Johnson, which saw a 22.3% increase, also detracted from relative performance [12] Portfolio Structure - The Fund held 46 stocks, with a significant overweight in biotechnology (31.8%) and health care equipment (24.0%), while being underweight in pharmaceuticals (15.2%) [24][28] - The top 10 holdings represented 47.8% of net assets, with Eli Lilly and argenx being the largest positions [26] Recent Activity - The Fund added 16 new positions and exited five, maintaining a focus on attractive valuations in the health care sector [29] - Notable purchases included AbbVie Inc., UnitedHealth Group, and Roivant Sciences, while positions in argenx and Eli Lilly were reduced to manage risk [30][31][37] Market Outlook - The health care sector is expected to offer attractive investment opportunities driven by demographic trends, chronic disease prevalence, and technological advancements [14][40] - Recent agreements, such as Pfizer's MFN pricing deal, are seen as positive for the pharmaceutical sector, with limited financial impact anticipated [38]

Core Insights - RadNet, Inc. will host an Investor Day on November 11, 2025, at the Nasdaq MarketSite in New York City, focusing on strategic priorities and market opportunities [1][2] Company Overview - RadNet is a leading national provider of diagnostic imaging services in the United States, operating 405 outpatient imaging centers across various states including Arizona, California, and Texas [4] - The company employs over 11,000 team members, including contracted radiologists and technologists, and offers AI solutions under the DeepHealth brand [4] Event Details - The Investor Day will feature presentations from senior executives and physician leaders, discussing the company's innovation roadmap and long-term strategies [2] - In-person attendance is by invitation only, with opportunities for attendees to engage with management and experience product demonstrations [3] - A replay of the event and related materials will be available on RadNet's Investor Relations website [3]

Core Insights - RadNet, Inc. will host a conference call to discuss its Q3 2025 financial results on November 10, 2025, at 7:30 a.m. Pacific Time [1] - The company is a national leader in providing diagnostic imaging services and operates a network of 405 outpatient imaging centers across several states [3] Company Overview - RadNet, Inc. is the leading national provider of freestanding, fixed-site diagnostic imaging services and related IT solutions in the U.S. based on the number of locations and annual imaging revenue [3] - The company operates in markets including Arizona, California, Delaware, Florida, Maryland, New Jersey, New York, and Texas [3] - RadNet employs over 11,000 individuals, including full-time and per diem employees and technologists [3]

Summary of RadNet Conference Call Company Overview - **Company**: RadNet - **Industry**: Healthcare Services, specifically diagnostic imaging - **Position**: Largest operator of independent freestanding imaging facilities in the U.S., with significant operations on the East and West Coasts [1][3] Core Business Performance - **Growth Rate**: RadNet has achieved a 9.1% compound annual growth rate in revenue since 2007, with recent acceleration in growth due to increased patient volume in outpatient centers [3][4] - **Same-Center Procedure Volume**: Historically in the 2% to 4% range, now routinely in the mid-single digits, particularly for advanced imaging, with over 15% growth in same-center PET/CT procedures [3][4] - **Margin Enhancement**: Driven by operational improvements and a new digital health platform, leading to increased efficiency and productivity [4][6] Business Segments 1. **Imaging Clinics**: Core business with significant growth driven by demographic changes and a shift towards outpatient care [12][14] 2. **Clinical AI**: Development of AI solutions to enhance operational efficiency and accuracy in imaging [6][9] 3. **Digital Health Platform**: DeepHealth OS, a cloud-based operating platform that automates various processes, improving efficiency across the business [25][27] Market Trends - **Demand for Diagnostic Imaging**: Growing demand driven by an aging population and advancements in imaging technology [12][13] - **Shift to Freestanding Centers**: Increasing market share for outpatient imaging centers as patients and payers prefer lower-cost alternatives to hospital imaging [14][21] - **Joint Ventures with Hospitals**: RadNet is partnering with hospitals to create outpatient centers, allowing hospitals to benefit from the shift in imaging services [21][23] Technology and Innovation - **DeepHealth OS**: Expected to drive significant efficiencies in operations, including automated scheduling and insurance verification [25][27] - **CMODE Acquisition**: An ultrasound AI company that automates thyroid ultrasound processes, expected to reduce exam times and increase capacity [33][35] - **Advanced Imaging Growth**: Notable growth in PET/CT procedures, with expectations for new FDA-approved radiopharmaceuticals to further drive demand [39][40] Financial Outlook - **Capital Expenditure**: Anticipated spending of $150 million to $160 million in CapEx to support growth and expansion [43][44] - **Cash Position**: Over $800 million in cash on the balance sheet, providing financial flexibility for investments [43] Investor Insights - **Optimism for the Future**: The company is well-positioned for growth in the diagnostic imaging sector, with a strong capital structure and management team [50] - **Transformation in Imaging**: Anticipated industry transformation over the next decade with the adoption of digital solutions [50] Key Takeaways - RadNet is experiencing robust growth in the diagnostic imaging sector, driven by demographic trends and technological advancements - The company is strategically positioned to capitalize on the shift towards outpatient care and the integration of digital health solutions - Continued investment in technology and partnerships with hospitals will enhance operational efficiency and expand market reach [3][4][12][14][50]

Core Insights - RadNet, Inc. is a national leader in providing high-quality, cost-effective diagnostic imaging services through a network of outpatient imaging centers [1][2] - The company will present at the Jefferies Healthcare Services Conference on September 29, 2025 [1][2] Company Overview - RadNet operates a network of 405 owned and/or operated outpatient imaging centers across various states including Arizona, California, Delaware, Florida, Maryland, New Jersey, New York, and Texas [2] - The company employs over 11,000 team members, including contracted radiologists, full-time and per diem employees, and technologists [2] - RadNet also offers radiology information technology and artificial intelligence solutions under the DeepHealth brand, as well as teleradiology professional services [2]

Group 1 - The presentation is led by Christopher Brustuen, Managing Director, who emphasizes the importance of disclosures and encourages questions to be directed to Morgan Stanley sales representatives [1] - Dr. Berger and his team from RadNet are present for the discussion, indicating a collaborative approach to the session [2]

Group 1 - The presentation is led by Christopher Brustuen, Managing Director, who emphasizes the importance of disclosures and encourages questions to be directed to Morgan Stanley sales representatives [1] - Dr. Berger and his team from RadNet are present for the discussion, indicating a collaborative approach to the session [2]