The company was able to boost its net income in part by reducing spending on drugs and supplies.
MFC also announced efforts to sell its ownership stake in Barranca Surgery Center in Irvine, Calif.
“Operations of Barranca Surgery Center have continued to be negatively impacted by the departure of several physician owners,” said Dr. Donald Schellpfeffer, CEO of Medical Facilities, in a news release. “We are now in negotiations to divest our interest in the Center. This divestiture will positively impact our operating results and efforts on cost containment and physician recruitment.”
MFC reported its consolidated facility service revenue was down for the second quarter to $51.2 million compared with $52.2 million in the second quarter of 2009.
Consolidated operating expenses, which includes salaries and benefits, drugs and supplies, and general and administrative costs, totaled $32.1 million compared with consolidated expenses of $32.8 million in the second quarter of last year.
“The improvements in results for the second quarter were recorded despite a 1.9 percent decline in consolidated revenue, largely accounted for by the decline in revenue in our California ambulatory surgery centers,” said Dr. Schellpfeffer. “While we saw positive changes in overall case mix and higher pain management revenues, lower overall case volume and a higher proportion of cases covered by payors with lower reimbursement rates offset these revenue increases.”
Read the news release about the second quarter for Medical Facilities Corporation.
View the full second quarter report for MFC (pdf).
