🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

TFSA Investors: 1 Recession-Proof Business to Own in 2021

Published 2021-03-18, 04:00 p/m
TFSA Investors: 1 Recession-Proof Business to Own in 2021

Medical Facilities (TSX:DR) operates specialty surgical hospitals and an ambulatory surgery centre in the United States. The company’s specialty surgical hospitals provide scheduled surgical, imaging, diagnostic, and other ancillary services, such as urgent care and occupational health. It also offers ambulatory surgery centre, which performs scheduled outpatient surgical procedures, and third-party business solutions to healthcare entities. The company was incorporated in 2004 and is headquartered in Toronto.

Prudent business strategy The company is focused on acquiring additional facilities to enhance the potential for operational efficiencies, including the implementation of operational best practices, standardization of equipment, and group purchasing programs. These acquisitions should enhance the stability of the company’s operations on a combined basis through a broadened geographic base and diversification of the company’s customer base.

Attracting the best healthcare professionals Medical Facilities has been very successful in attracting and retaining quality physicians. Some reasons for this success include an ownership and management structure in place, which is designed to increase a physician’s productivity and professional fee income, promote professional success, provide control over scheduling, and enhance the quality of patient care.

Enhancing operational efficiencies The clinical and operational procedures in place at each company facility is designed to maximize operational efficiencies. By focusing on a limited number of specialized procedures, Medical Facilities is able to develop and implement clinical and administrative best practices, which increase physician productivity. Each facility identifies and achieves potential synergies, which includes the implementation of best practices, standardization of reporting, participation in group purchasing programs, and consolidation of benefit programs.

Robust marketing strategy Medical Facilities undertakes proactive marketing activities directed at physicians, other healthcare providers, patients, and payors. These activities generally emphasize the benefits offered by the individual company facility compared to other healthcare facilities, such as the ability to schedule consecutive cases without pre-emption by emergency procedures, efficient turnaround time between cases, the simplified administrative procedures utilized at each facility, and overall patient satisfaction.

Facilities expansion The company looks to increase revenues and operating efficiency by the disciplined introduction of new service lines and more complex surgical and pain management procedures. Physician loyalty is a key to the success of the company. Physicians prefer practicing at the company because of the ability to increase the number of procedures performed in a given period relative to a traditional hospital setting. This maximizes efficiency and increasing professional fee potential.

The clinical and administrative procedures in place at the company are designed to improve the patient experience and ensure a high degree of patient satisfaction. Patients prefer the company’s facilities over traditional hospitals and other surgical facilities because of the comfort of a less institutional environment, a high level of customer service and convenience, simplified administration procedures, and greater scheduling flexibility while providing high-quality patient care. The company’s facilities consistently rank high in industry-leading surveys and studies of patient satisfaction.

Management and the members of the board of directors of the company have extensive financial and corporate development experience and extensive relationships throughout the healthcare industry. This should serve Medical Facilities well.

The post TFSA Investors: 1 Recession-Proof Business to Own in 2021 appeared first on The Motley Fool Canada.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. The Motley Fool owns shares of MEDICAL FACILITIES CORP.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2021

This Article Was First Published on The Motley Fool

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.