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Alliance Imaging Cuts 2007 on Medicare

Anaheim’s Alliance Imaging Inc., a provider of medical scanning services, said Tuesday its 2007 earnings would be hit by Medicare reimbursement changes.

The company runs diagnostic imaging systems in hospitals and at healthcare centers.

Alliance said it expected its earnings to be hurt by $14 million next year because of a reimbursement cut for imaging procedures that takes effect Jan. 1.

The company said it expects earnings before interest, taxes, depreciation, amortization and other onetime charges of $148 million to $156 million next year on revenue of $431 million to $443 million.

The Medicare imaging payment cut, which came about because of the Deficit Reduction Act of 2005, and other regulatory changes “will significantly impact Alliance for 2007 and beyond,” Chief Executive Paul Viviano said.

Alliance also affirmed its 2006 profit guidance of $168.5 million to $171 million on revenue of $452.5 million to $455.5 million.

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