May 23, 2013
Dynacq Healthcare operates specialty surgical hospitals that perform bariatric (weight-loss), orthopedic and neuro-spine surgeries. The company's two hospitals are located in Texas, tying its profitability to demographic and economic trends in the state.[1] The high obesity rate in Texas, for example, has increased demand for bariatric surgeries, boosting Dynacq's revenues.[2]
Dynacq's specialty procedures are high-margin - bariatric surgeries, for instance, net its hospitals about $25,000 per procedure.[3] Nevertheless, Dynacq has struggled to remain profitable during the past three years, facing difficulties in specialty surgeon recruitment and below-cost reimbursements from workers compensation plans, which account for about half of revenues. After the sales of two facilities, the firm posted a positive net income in 2007 for the first time in four years.[4]
(Read more at Wikinvest
) - Company Overview
- Business and Financial Metrics
- Business Segments
- Key Trends, Risks, and Forces
- Politicians and Traditional Hospital Operators Seeks to Limit Growth of Specialty Hospitals
- Physician-run Surgery and Diagnostic Centers Are Entering the Marketplace, Increasing Competition
- The Texas Obesity Epidemic Increases Demand for Bariatric Surgeries
- A Slowdown in the Chinese Economy Affects International Growth Prospects
- Competition
- Market Share
- References
