Diagnostic Imaging Firm Cuts Growth

American Health Services Corp., a major national operator of medical diagnostic imaging centers, said Wednesday it is sharply scaling back its growth plans, resulting in a loss for the third quarter ended Sept. 30.

E. Larry Atkins, who took over as the Newport Beach-based company’s chief executive in August, said in a meeting with industry analysts that as a result of this move the company will take writedowns of $2.5 million leading to an unspecified third-quarter loss.

The writedowns, he said, are related to severance arrangements and the termination of projects that no longer meet the company’s strategic goals.

Atkins said he wants to slow American Health Services’ growth to about 20% a year. The company has more than doubled in size in the past 14 months, increasing the number of centers it operates to 37 from 18.

Atkins said the company now plans to add eight to 10 new centers in 1991, in contrast to its former plan to add 20 centers.

“We want to focus on (increasing) earnings,” he explained. “Our after-tax earnings haven’t been satisfactory to the management or the shareholders. We think we can do better if we focus more on operations and less on growth.”

In the first six months of 1990, the company had net earnings of $771,000 on revenue of $15.5 million.

Atkins, who previously was chief operating officer of American Health Services, assumed the top executive position Aug. 6 upon the resignation of S. Lewis Meyer, who had served six years as chief executive.