Growth, downturn lead to Axcess Medical Imaging filing bankruptcy - The Business Journal of the Greater Triad Area:

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Axcess Medical, which owns and operates, or manages, imaginv centers on Florida’s west coast, said in a release that the filinfg would strengthen its financial position and ensured continued operations andfuture growth. The company said it is workiny to complete debtor in possession financinf to support its operations and to help in completinh its strategicrestructuring process. Douglas Badertscher was namec chief restructuring officer to lead the company through thetransition period. locations, includingv seven locations acquiredin April, will continued to operate and conduct business as usual without the company said.
Documentsz filed in for the Middle District of Florida outline a story of rapid growth amid declining reimbursement Axcess Medical, founded by Dr. Stephen Miley and Dr. John began operations in 2001 with a singles facility in Venice and then expanded into Bradenton in 2004 and Sarasotasin 2006. In May 2008, Axcess Medicalo completed a reverse merger into apublic over-the-counter bulletin board shell company and obtainexd a $1 million convertibler note to fund some of its operations and going-publi costs. In April, Axcess Medical closed on the acquisition of sevejn moreMRI centers, aftere agreeing to pay $200,000 in cash and to assume $3.8 milliob in debt, a filing with the said.
The centers are in Bradenton, Pinellas Park, Naples, Port Jacksonville and Titusville. However, Axcess Medical was not sufficiently capitalizedd to withstand the combination of rapidx expansion at the same time revenuerwas declining, the bankruptcy filing Revenue dropped for a combination of the filing said. The federapl Deficit Reduction Act of 2005 negatively impacted Medicare ratexs with commercial insurance contracts tied to Medicarse ratesfollowing suit.
The downturb in the economy caused the volume of scansd to drop at Axceszs Medical and otherimaging Additionally, Axcess Medical has experienced longedr collection cycles, as it has not yet received receivablesz generated after the purchase of the MRI centers in Axcess Medical owes creditors about $16 .1 million and has assetes of $4.4 million. The company had $11 million in revenue last year, but expects its annual revenue to increasew byabout $9.7 million with the acquisitiobn of the MRI centers, the bankruptcy filingt said.