Medical Facilities Corp. (TSX:DR) is a British Columbia-based corporation that owns a majority interest in five specialty surgical hospitals in the United States. The hospitals focus on high-volume, non-emergency procedures, as well as diagnostic and imaging services. Shares were up 0.68% close to the end of the noon hour on October 24. The stock has declined 15.2% in 2017 and 35% year over year.
Medical Facilities Corp released its second quarter results on August 10. The company saw revenues climb 25.2% to $96.1 million in comparison to $76.6 million in the second quarter of 2016. Surgical cases grew by 14.9% and revenue per case also saw an increase due to the complexity of surgeries. Income from operations increased 17.6% to $16.2 million in the quarter.
The company declared a dividend of $0.09 per share representing an impressive dividend yield of 7.5%.
The ongoing political debate in the United States concerning the Affordable Care Act is of major interest to Medical Facilities Corp. The company seeks to acquire physician-owned specialty hospitals, but the foundation of these entities has been prohibited by the Affordable Care Act.
The Trump administration and the Republican-controlled House and Senate has attempted to repeal the act numerous times without success. Leaders on both sides have suggested a bipartisan effort but it is unclear at this time whether the Trump administration will pursue this avenue.
For now, Medical Facilities Corp boasts growing revenue and a very attractive dividend yield for investors.
