| Medical Facilities
Corporation (MFC) owns 51%+ interest in four specialty surgical hospitals,
located in South Dakota and Oklahoma, as well as 51% in two ambulatory
surgery centers in California. The specialty hospitals perform scheduled
surgical, imaging and diagnostic procedures and, combined, have a
total of 30 operating rooms and 51 recovery beds. The ambulatory surgery
centers ("ASC") specialize in outpatient procedures, with
patient stays of less than 24 hours. The ASCs have a combined total
of five operating rooms and one procedure room.
While MFC is a British Columbia corporation, it
is designed to be similar to Canadian Income Trusts. The issuance
of "Income Participating Securities" ("IPS")
provides a tax efficient distribution of the cash flow from the
business to the investors. An IPS represents a direct interest in
a dividend-paying common share and interest-paying subordinated
note. MFC is considered Canadian property and trades on the TSX
under the symbol DR.UN.
Our unique management philosophy focuses on efficiency
and productivity of our facilities. MFC revenues come from the facility
fee charged to the patient, or their insurer. This facility fee
is for the use of our infrastructure, surgical equipment, nursing
staff, non-surgical professional services, drugs and supplies, and
other support services.
The MFC specialty hospitals are dramatically different
than traditional hospitals. Our goal is to create a superior environment
so that use of our facilities is the first choice of patients and
their surgeons. We achieve a superior environment by focusing on
a limited number of surgical, imaging and diagnostic procedures,and
by offering 'five star hotel' surroundings and service. For the
surgeon, the MFC hospitals provide efficiency and increased productivity
as well as a pleasant work environment. We offer surgeons such benefits
as the ability to schedule consecutive cases without pre-emption
by emergency procedures, efficient turnaround time between cases
and simplified administrative procedures. For the payor, we provide
a competitive alternative to traditional hospitals.
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