Foundation HealthCare, Inc. (OTCQB: FDNH) owns and operates surgical hospitals that provide both general and specialty surgeries – including orthopedics, neurosurgery, pain management, podiatry, gynecology, optometry and gastroenterology – as well as a collection of ancillary hospital-based services that helps set the Foundation HealthCare specialty hospital environment apart from the competition. Additionally, Foundation HealthCare is an industry-leading ambulatory surgery center (ASC) management and development company offering turnkey management and development solutions for its physician partners. Through these operations, the company is focused on creating an outstanding patient experience while maximizing partner and shareholder value.
“Patient care is our number one priority at Foundation HealthCare and a key differentiator in our business model,” Stanton Nelson, chief executive officer of Foundation, stated in a news release. “Our physician partners and our clinical teams continue to perform at a high level which is why we believe our patient satisfaction scores are some of the highest in the country.”
In the second quarter of 2015, the company successfully translated its high patient satisfaction scores into strong financial results. Foundation achieved a 44 percent year-over-year increase in net revenues for the period, recording $31.9 million, while its adjusted EBITDA rose by a massive 246 percent to $3.6 million. The company also took significant steps toward ensuring future growth through the sale of its minority interest in an underperforming hospital in Sherman, Texas, for a gain of $6.3 million and the negotiation of a $20 million line of credit to aid in the pursuit of viable acquisition targets.
“The core of Foundation’s growth strategy is to expand services at our majority-owned hospitals and acquire more of these hospitals,” continued Nelson. “Our $20 million acquisition line of credit… combined with our continued growth positions us well to aggressively pursue opportunities in new geographic markets.”
The company’s current portfolio of facilities and affiliates includes two majority-owned surgical hospitals located in San Antonio and El Paso, Texas, as well as minority interests in one hospital in Edmond, Oklahoma, and eight ASCs located across five states. Foundation also maintains an interest in one hospital outpatient department through its investment in the Edmond hospital, and the company has a management contract with one ASC in Louisiana in which it has no ownership interest.
As the healthcare industry continues to shift toward value-based care options, this diverse portfolio of properties should provide Foundation with a platform to realize sustained financial growth moving forward. Look for the company to leverage the added flexibility afforded by its recently negotiated line of credit in order to capitalize on this market shift while promoting strong returns for the foreseeable future.
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