Metropolitan Health Networks Inc., a leading provider of healthcare services in Florida, today announced its financial results for the first quarter ended March 31, 2010.
First-quarter revenue for 2010 was reported at $93.0 million, a 2.9 percent increase over $90.4 million reported for the first quarter of 2009.
The company posted operating income of $11.2 million in 2010 first quarter compared to $6.4 million in 2009. Net income for the 2010 first quarter was $7.1 million, or $0.18 per share basic and $0.17 diluted, as compared to $4.0 million, or $0.09 per basic share and $.08 diluted, for the same quarter last year.
As of March 31, 2010, cash, cash equivalents and short-term investments totaled $30.3 million compared to $33.8 million at December 31, 2009. The company attributes the reduction primarily to the continued repurchase of 1.7 million of its common stock for $3.9 million and the increase in the amount due from Humana partially offset by net income and the sale of short-term investments. Net working capital increased 20.6 percent to $33.4 million at March 31, 2010, from $27.7 million at December 31, 2009.
Michael Earley, chairman and CEO of Metropolitan Health, said several factors contributed to the company’s positive quarterly results and that the company remains on track for future success.
“We are delighted with our first quarter results. 2010 is a year of transition and challenge for the Medicare Advantage industry as we face declining base premiums. A combination of strategies including improved medical management, continuing focus on revenue compliance, reduced plan benefits and the elimination of unprofitable plans resulted in a terrific start to the year. While one quarter doesn’t make a trend, and we don’t assume these outstanding results are a trend, it is clear that our efforts are positioning us for another good year, and convince us that our business model initiatives are further positioning us for continued success,” Earley stated in the press release.
Earley noted the slight growth in membership of Medicare Advantage, though the company was affected by controversy over the health care reform debate over the last 18 months. He also said that company’s management’s discussions and decisions to focus its resources and energy on improving operations was the right strategy for the company.
“We achieved record bottom line results in 2009, continuing through Q1 2010, but more importantly we made significant progress developing and implementing the Patient Centered Medical Home model of primary care and related initiatives. Investment in these efforts continue, of course, but we are already seeing tangible results today in terms of improved customer satisfaction, employee engagement, and medical and financial outcomes from these initiatives,” Early stated. “With passage of the recent legislation, the paths and opportunities in the future are clearer, and we are better prepared to focus on growth. We believe that Medicare Advantage will continue as a viable and attractive health care alternative for the soon to boom senior population, and we believe that consumer-centric, coordinated care will best serve this market in terms of customer satisfaction, effective outcomes and efficiency.”
For more information visit www.metcare.com