Health Diagnostics Information

In response to the financial uncertainties caused by erratic MRI equipment sales in the 1990's, FONAR sought a steady and reliable source of revenue. At that point, not only was FONAR, as the inventor of MR scanning, the master of MRI technology, but FONAR, having worked with its customers for nearly 20 years, had also become very familiar with the day-to-day management of independent MRI scanning centers. Ideally positioned to expand into the MRI practice management business, FONAR formed the HMCA subsidiary in 1997. Since then, HMCA has become the leading source of revenue and profit. HMCA's continuing success is fundamentally attributable to the ever-growing appeal of FONAR MRI technology among patients and physicians. Patients strongly prefer the FONAR Multi-Position™ UPRIGHT® MRI, also known as the Stand-Up® MRI, for its comfort and openness, unlike the more conventional "tunnel" MRIs. Physicians are drawn to the UPRIGHT® MRI as well, for two reasons: They can accommodate their patients' preferences without compromising on diagnostic image quality, and for the many instances where the anatomy of interest needs to be viewed in a weight-bearing position, such as the lower back and cervical spine with the patient either standing or sitting, the UPRIGHT® is the only MRI that can do it. But outstanding technology is no guarantee of success. It has to be properly marketed, and the patients and their physicians have to be pleased with the service they receive at the scanning centers. Accordingly, marketing and service to both patients and referring doctors are top priorities at HMCA-managed centers. Regarding the future, HMCA continues to conduct demographic studies in search of de novo locations and/or acquisition opportunities in New York and Florida that are compatible with our business plan and would add quickly and significantly to net revenues and profit.