Investor-owned healthcare companies reported record earnings in the third quarter ended Sept. 30, according to WDI Capital Markets, a Hilton Head Island, S.C.-based investment banking and research firm.
The report includes third-quarter results from more than 500 publicly traded healthcare companies. Earnings figures are adjusted for accounting changes, restructurings and write-offs.
The provider and services group reported a 41% jump in profits on a 24% increase in revenues, compared with the same period a year ago, WDI said. Outpatient services reported the highest growth among the 11 provider segments in the group. Outpatient companies saw a 146% spurt in adjusted earnings.
Also posting strong profit growth were long-term-care companies. They reported a 70% jump in adjusted earnings on revenue growth of 26%, compared with the year-ago quarter.
Hospital companies posted strong growth as well, WDI reported. Investor-owned chains reported a 44% increase in adjusted income on a 21% growth in profits. The performance was even stronger than the second quarter's 31% gain in profits.
Managed-care companies continued to do well, reporting a 37% increase in adjusted profits on a 22% increase in revenues, WDI said. However, that was below the performance of managed-care companies during the past four quarters, when profits have surged an average of 50%.
Jack Cumming, WDI's president, predicted double-digit growth among providers will continue in the fourth quarter.
Growth remains less buoyant among healthcare vendor companies, however.
The medical devices group reported adjusted earnings of 15% on 13% growth in revenues. In addition, pharmaceutical companies continued to report modest growth. Adjusted earnings were up 7% on a 14% rise in revenues.