The company attributed the increased revenue to growth at Oklahoma Spine Hospital, Sioux Falls Surgical Hospital and Black Hills Surgical Hospital, which experienced year-over-year revenue growth rates of 12.4 percent, 10.8 percent and 5.8 percent, respectively. This growth was offset by revenue declines at Dakota Plains Surgical Center, Barranca Surgery Center and The Surgery Center of Newport Coast due to a shift in case mix at these centers and lower case volumes at Barranca and Newport Coast, according to the release.
Consolidated operating expenses — including salaries and benefits, drugs and supplies and general and administrative costs — for the first quarter of 2010 totaled $34.5 million, or 67.3 percent of revenue, compared to consolidated expenses of $29.6 million, or 61.3 percent of revenue, in the first quarter a year ago. MFC attributed the increase in expenses to higher drug and supply expenses due to higher case volumes and shifts in case mix as well as a higher proportion of Medicare and Medicaid cases.
Consolidated operating income, before depreciation and amortization, interest expense, loss on foreign currency translation and minority interest in the first quarter of 2010 was $16.8 million, or 32.7 percent of revenue, compared with consolidated operating income of $18.7 million, or 38.7 percent of revenue, in the first quarter a year ago.
“During the first quarter, we saw consolidated revenues grow by 6.5 percent to $51.4 million, driven by higher case volume and higher revenue per case. Our specialty hospitals, in aggregate, experienced a 5 percent increase in surgical cases and a 5.1 percent improvement in average revenue per case,” Donald Schellpfeffer, MD, CEO of MFC, said in the release. “However, our operating income was negatively impacted by a combination of higher proportion of cases covered by payors with lower reimbursement rates, an increase in the number of cases which, while generating higher revenue per case, also attract a higher level of drugs and supplies costs and an increase in inpatient cases at our larger hospitals, which attract a higher level of patient care. Our performance continues to be negatively impacted by weakness in case volume and facility service revenues at our ambulatory surgery centers in California, which continue to reflect local economic conditions.”
Read the release on Medical Facilities Corp.’s financial earnings.
