One of the top healthcare trends of the past 30 years is expected to continue, according to Healthcare Finance News. In a recent post, titled Outpatient Is In, the authors cited six reasons why the demand for outpatient surgery centers is growing. Reduced operating costs, higher reimbursement, and increased patient demand for outpatient procedures are among the factors driving the explosion in ambulatory surgical centers (ASCs).
As technology advances over the next few years, complex procedures such as fracture surgery and arthroscopic hip reconstruction will increasingly move to the ASC setting. One way for investors to capitalize on this long-term trend is through First Surgical Partners Inc. (OTC BB: FSPI), an operator of two ambulatory surgery centers and a general acute care hospital in the Houston area.
FSPI employs some of the top surgeons in the United States. The Company’s reputation for providing high-quality healthcare enabled FSPI to grow revenues 44% and net income 77% year-over-year for the most recent reported quarter. FSPI plans to expand beyond the Houston market by adding four surgical centers over the next two years, which should help drive 25% annual revenue growth through 2013.
Another reason to invest in FSPI: the Company pays a dividend, a rarity among emerging growth companies. The Company declared its third consecutive quarterly dividend in November. With the Company’s nearly 40 physician shareholders owning a large percentage of the shares outstanding, it’s highly likely the attractive dividend payments, which many view as part of their compensation, will continue well into the future.
First Surgical provides investors with an opportunity to participate in a fast-growing, profitable, dividend-paying company that capitalizes on a major long-term healthcare trend. To learn more about FSPI, you can view the Company’s corporate presentation from our New York conference, where we conducted a video interview with FSPI’s chairman, Dr. Jacob Varon.
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