Medical Facilities Corp. Operating Profit Soars 16% in 2013
Operating income at Medical Facilities Corp. increased 15.7 percent to $91.1 million in fiscal year 2013.
The investor-owned MFC is based in Toronto but holds a majority stake in five U.S. surgical hospitals and one U.S. ambulatory surgery center. Physicians at the facilities own the remaining stakes.
Overall revenue last year was $309.2 million, a 29.2 percent increase from $239.4 million in 2012. That gave MFC an operating margin of 29.5 percent in 2013, compared with 32.9 percent in 2012. However, the operating margin is still much higher than the average nonprofit hospital's, which ranges from 1 to 6 percent. Physician-owned hospitals usually post higher margins due to their focus on profitable surgical specialties.
Donald Schellpfeffer, MD, CEO of MFC, said in a news release the company was growing thanks to its 2012 acquisition of Arkansas Surgical Hospital in Little Rock and the expansion of urgent care.
"We remain committed to delivering and enhancing high-quality patient care and optimizing the performance of our centers through a combination of strategic initiatives, including physician recruitment, enhanced case and payer mix, urgent and primary care and, where applicable, improved cost controls, in order to continue providing reliable income and long-term value to our shareholders," he said.
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