DVI Health Services Acquires 22% Stake in IPS as Insurance : Transaction: The latter firm recently defaulted on leases from the former. DVI wants more influence over IPS to ensure against suffering any losses.

DVI Health Services Corp., a financial-services and medical-equipment company, has acquired a 22% stake in IPS Health Care Inc., which defaulted on leases to DVI three months ago.

The stock transaction, valued at about $1.6 million, is one in a series of moves that will strengthen DVI’s influence over IPS decisions. In July, DVI agreed to restructure about $5.3 million in lease payments for mobile Magnetic Resonance Imaging systems, which physicians use to scan the body for injuries.

“We thought it was in our best interest to take steps to ensure that we didn’t have a loss” on the leases made to IPS, DVI President David Higgins said. “Our goal certainly is not to liquidate the company. If we wanted to do that, we would have done that a long time ago. What we want to do is look out for the shareholders.”

DVI also was issued warrants to purchase 400,000 shares of IPS common stock. If it converted those warrants, DVI would increase its stake to about 34% based on the current number of shares. Higgins and Anthony Purek, DVI’s senior credit officer, will join the IPS board. Both companies are based in Irvine.

IPS, a medical technical-services company, has suffered a series of losses and management shake-ups in the past year yet has managed to stay in business. Most recently, it reported a loss of $1.2 million for its latest fiscal quarter, which ended July 31. For its latest fiscal year, IPS lost $5 million.

IPS officials say the company’s financial troubles stem from difficulties it has had in collecting reimbursement fees from insurance companies. IPS has overhauled its management, hiring Andrew Galligan earlier this year after founder Todd Skulte resigned in the wake of poor quarterly performances. The company also named its operating subsidiary Guardian Imaging Service Inc.

DVI officials said they will provide sales and marketing assistance to IPS under a consulting agreement. A DVI subsidiary, A/R Advantage Inc., has agreed to collect IPS receivables and provide a line of secured credit to the company.

“There’s a new management across the board, and they realize the business they’re in is not rocket science,” DVI’s Higgins said. “It’s blocking and tackling.”

DVI reported a profit of $4.2 million on revenue of $30.7 million for its latest fiscal year.