Hospitalist Group’s First Quarter Shows Financial Growth

IPC The Hospitalist Company Inc.’s higher first-quarter earnings and revenues were spurred by recent acquisitions and growth in both new and existing markets. For the first quarter of 2011 that ended March 31, the North Hollywood-based hospitalist group practice had net income of $7.7 million, or $0.46 per diluted share, on revenues of $113.4 million. That was an increase from the same period in 2010 when the company had net income of $5.7 million, or $0.35 per diluted share, on revenues of $87.7 million. IPC’s patient encounters were also at an all-time high of 1.2 million for the first quarter, representing a 28 percent increase from the same period a year ago. “We are pleased to again report a record quarter,” said Dr. Adam D. Singer, CEO of IPC. “Our revenue growth of 29 percent reflects not only the results of the acquisitions we completed in the latter part of 2010 and early 2011, but also growth from our existing regions. Our strategy of post-acute expansion and integration of our acute and post-acute practices is proving that there are new avenues to improve patient care which can be driven by high quality physicians groups.” Singer said the company has completed four acquisition year-to-date in 2011, including an acquisition that provided an expansion into a new region in Southern California. The company also agreed to take over an employed group from a two-hospital system in its existing New England market. Singer described IPC’s pipeline for future acquisitions as “robust” with a significant number of privately owned, unaffiliated physician practices in both the acute and post-acute areas. Beside acquisitions, he added that there will be opportunities for the company to add to its practices through hospital contracting, by either taking over an employed group or starting new groups under hospital contracts. “We are confident about our ability to continue to execute our multi-pronged growth plan for the remainder of 2011 and beyond,” Singer said. For the year of 2011, the company is projecting its revenues will range between $446 million and $455 million and its earnings per diluted share will range between $1.78 and $1.86. Jessica Vernabe