Medical Facilities’ management is deploying a growth strategy that leverages the solid revenue generation of its high quality facilities to achieve higher operating efficiencies and utilization rates while also taking advantage of its market knowledge and deep networks to add facilities through acquisitions.
At its specialty surgical hospitals and ambulatory surgery center, management will continue its physician-centric focus which includes physicians owning up to 49% of a facility and playing an active role in its management. The clinical and operational procedures in place at each facility are designed to maximize operational efficiencies through a focus on case mix and efficiency rather than just the case volume. Along with this, management is continuously working towards creating purchasing efficiencies and synergies among the facilities by leveraging their aggregate purchasing power.
Continued increases in revenues and operating efficiency are planned through introducing new and more complex surgical procedures and service lines. Incremental case volume growth will also be generated by adding new participating surgeons and introducing new technology that will enable the processing of more case volume in less time.
In the larger market, changing demographics and reimbursement models are driving consolidation and rationalization trends. With Medical Facilities’ reputation as an effective partner of physician teams, along with its strong cash position and access to the public markets, it is well-positioned to take advantage of acquisition opportunities. Facilities across the healthcare delivery spectrum will be considered as potential acquisitions. Optimum targets are those based on the physician ownership model and that will be near-term accretive and enhance shareholder value creation.
By combining both organic and acquisition growth opportunities, Medical Facilities will continue to deliver value from a strong foundation of high-quality facilities providing exceptional patient care while maintaining a conservative approach to financial management that has resulted in a long track record of solid returns.