Mednax reports Q1 net revenue increase to $836M, drop in net income: 5 key notes
Mednax reported preliminary financial and operating results for the first quarter of 2017.
Here are five things to know:
1. The company's first quarter net revenue increased from $753 million to $836 million year-over-year. Net income, however, dropped from $68 million in the first quarter of 2016 to $55 million in the first quarter of 2017.
2. The company shifted to government payers and lower neonatology volume, which drove a drop same unit revenue. Same-unit revenue from net reimbursement is expected to show a 0.6 percent decrease year-over-year.
3. There was higher practice compensation expense for primarily non-physician clinicians in the first quarter.
4. First quarter EBITDA was $132 million, compared to $144 million last year. The earnings per share dropped from $0.73 for the first quarter of 2016 to $0.75 in the first quarter of 2017.
5. Patient volume was down 0.3 percent year-over-year for the first quarter, driven by a 2.1 percent decline in same-unit neonatal intensive care unit patient days. The decline in the NICU patient days is expected to impact the company's same-unit volume negatively by around 60 basis points.
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