Sick Babies Ain't Chopped Liver on Wall Street
There's a thin red line between shameless hypocracy and blatent bullshit.
Like when the Pope pontificates about ordained pedophiles.
Or a high priced executive with a giant for-profit health care firm slams Obama's Health Care Reform package for failing to deal with the soaring cost of health care.
“The costs are going through the roof,” fumed David Hoskinson before a gathering of high priced Broward business types during this month's Fort Lauderdale Forum at Florida Atlantic University's downtown campus last Wednesday.
However and more to the point...
Hoskinson does very, very well, thank you, as Vice President for Managed Care with Broward-based (and very, very profitable) MEDNAX/Pediatrix – the nation's largest for-profit provider of neo-natal care for premature babies.
Which makes Hoskinson either a shameless hypocrite, or a blatent bullshitter.
You be the judge.
Armed with the standard MBA, David Hoskinson joined Pediatrix in 1998 after a stint with the giant Catholic Health West hospital conglomerate
Pediatrix was nearly 20 years old when Hoskinson joined the firm – which began in 1978 when its physician owners signed a contract with the North Broward Hospital District to provide neo-natal care to newborns at Broward General and Coral Springs.
During the ten-plus years Hoskinson has been with Pediatrix, the Sunrise-based firm has been plagued by several Medicaid fraud investigations** and stockholder suits – none of which appear to have damaged the stunning growth in both the company's size and bottom line profits. (**one which led to a $25 million fine.)
No matter.
Because the sick baby business has a healthy bottom line.
MEDNAX/Pediatrix 1998 2009 CPI - 32%
NICU* Patient Days 450,225 1,658,845 186%
Net Patient Revenue $185,422,000 $1,288,264,000
Per NICU* Patient Day $412 $777 89%,
Net Profit $29,099,000 $175,804,000
Per NICU* Patient Day $65 $106 63%
Profit % of Revenue 15.8% 13.6%
Employed Physicians 350 1,484 324%
SOURCE: Annual Reports – SEC Filings
*NICU = Neonatal Intensive Care Unit
Following the Forum, I accused Hoskinson of being a poster child for much of what's wrong with our stock-droven health care system.
Which led him to ask if I had a problem with capitalism.
Which led me to confess my issue more about corporate greed.
Which, I suppose, makes me a craven Liberal.
Anyhow...
Anyone looking to get a serious bang for their buck, might want to take an investment flier in permature and sick babies – as opposed to automobiles.
Just consider the following:
2004 2009 5 year
Value Value Return
Company index
MEDNAX/Pediatrix $100.00 $187.70 87.7%
S&P 600 Healthcare $100.00 $126.40 26.4%
S&P 500 $100.00 $103.13 3.1%
NYSE Comp. Index $100.00 $99.10 ?
All of which suggests sick baby returns sure ain't chopped liver on Wall Street.
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