IPC the Hospitalist Co., which provides outsourced hospitalist services, reported a 12.8% increase in revenue
and a 2.1% increase in net income in its first quarter.
The North Hollywood, Calif.-based company reported
$10 million in net income on $172.7 million in revenue for the quarter compared with income of $9.8 million on revenue of $153.1 million during the same period last year.
Patient encounters increased 11.9% despite a more mild flu season and severe weather across much of the country. Winter storms had the most impact on lower-acuity post-acute care treatment, executives said on an earnings call.Post-acute care
represented 28.2% of its patient encounters, and 24.1% of revenue.
Despite the increase in volume, same market revenue decreased 0.8%, which IPC attributed to Medicare cuts under sequestration.
The company's administrative expenses climbed 15.9% to $27.6 million as IPC invested more resources in its post-acute care business and spent more money on recruitment and adding new regional offices.
IPC, a frequent acquirer of physician groups, also said it experienced an increase in expenses related to integrating new practices and hiring new doctors.
The company reaffirmed that it expects to report revenue of $720 million to $732 million for the full year. It also projected an adjusted diluted earnings per share in the range of $2.41 to $2.51.Follow Beth Kutscher on Twitter: @MHbkutscher