Medical Facilities

What Medical Facilities does

Medical Facilities Corporation (TSX: DR; OTC: MFCSF) is a British Columbia-incorporated, publicly traded holding company that owns controlling interests (51%) in physician-partnered specialty surgical hospitals in the United States. Through its wholly-owned U.S. holding subsidiary, Medical Facilities (USA) Holdings Inc., it currently operates two core facilities — Arkansas Surgical Hospital in North Little Rock and Sioux Falls Specialty Hospital in Sioux Falls, South Dakota — following the divestitures of Black Hills Surgical Hospital (2024), Surgery Center of Newport Coast (2025), and Oklahoma Spine Hospital (2026). Facilities deliver scheduled, non-emergency short-stay and outpatient surgical procedures (orthopedics, spine, neurosurgery, breast oncology and reconstructive surgery, gastroenterology/urology, ENT), pain management, diagnostic imaging (including 3T MRI and open upright MRI at Sioux Falls), and ancillary services such as urgent care, primary care, and occupational health. Tech infrastructure centers on clinical equipment rather than software platforms; no app, API, SDK, or AI/ML capabilities are disclosed.

Revenue is generated almost entirely through facility fees charged to patients or their insurers for use of infrastructure, surgical equipment, nursing staff, drugs, supplies, and support services, with reimbursement across private insurers, Medicare, Medicaid, and Workers' Compensation. The company employs a physician partnership model in which partner physicians hold the minority equity stake and participate directly in facility management and strategic direction, providing clinical alignment. Following a September 2022 strategic review, MFC has halted acquisitions and is pursuing divestitures of non-core assets, overhead reduction, and material capital returns to shareholders via dividends and substantial issuer bids (Cdn$60.7 million repurchase in March 2025 alone). Headcount is small (11–50 corporate staff across Toronto HQ, Brentwood TN U.S. office, and the two hospitals), and the company generates FY2025 facility service revenue of $342.2 million with $73.7 million in Adjusted EBITDA, while operating at a sub-$300M market capitalization.

Name

Medical Facilities

Legal name

Medical Facilities Corporation

Website

https://medicalfacilitiescorp.ca

Company type

Public

Founded year

2004

Operating status

Operating

Headcount range

11–50 employees

Short description

Medical Facilities Corporation (TSX: DR) owns controlling interests in two physician-partnered specialty surgical hospitals — Arkansas Surgical Hospital and Sioux Falls Specialty Hospital — that deliver scheduled outpatient and short-stay surgical, imaging, pain management, and ancillary services reimbursed via facility fees.

Ownership category

akta.pro rank

Product category

Specialty Surgical Hospitals

NAICS

Specialty (except Psychiatric and Substance Abuse) Hospitals (622310), Specialty (except Psychiatric and Substance Abuse) Hospitals (6223)

SIC

Services-Hospitals (8060), Services-Specialty Outpatient Facilities, Nec (8093)

akta.pro primary industry

Neurology & Neurosurgical Specialty Hospitals (HLAFAHAD)

akta.pro secondary industry

Oncology & Cancer Specialty Hospitals (HLAFAHAC)

Keywords

• Specialty surgical hospitals
• Outpatient surgical services
• Physician-partnered facilities
• Ambulatory surgical care
• Diagnostic imaging services

Headquarters

HQ city

Toronto

HQ country

Canada

HQ region

North America

Offices4 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Marketing or Sales, Supply Chain

Revenue model

1. Facility Fees: Medical Facilities generates nearly all of its revenue from the facility fee charged to the patient, or their insurer. This facility fee is for the use of infrastructure, surgical equipment, nursing staff, non-surgical professional services, drugs and supplies, and other support services.
2. Surgical and Diagnostic Services: Revenue from scheduled surgical, imaging, diagnostic and pain management procedures delivered on both inpatient and outpatient bases, including ancillary services such as primary and urgent care.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Medical Facilities Corporation owns and operates specialty surgical hospitals in partnership with physicians, delivering scheduled short-stay and outpatient surgical procedures (orthopedic, spine, general surgery), diagnostic imaging, pain management, and ancillary services such as urgent care and occupational health. Revenue is generated primarily through facility fees charged to patients or their insurers for use of hospital infrastructure, surgical equipment, nursing staff, professional services, drugs, and supplies.

Product overview

Medical Facilities Corporation operates a portfolio of two specialty surgical hospitals in partnership with physicians. The company owns controlling interests in Arkansas Surgical Hospital and Sioux Falls Specialty Hospital. These facilities deliver scheduled short-stay and outpatient surgical procedures including orthopedic, spine, and general surgeries, along with diagnostic imaging, pain management, and ancillary services such as urgent care and occupational health. The hospitals generate revenue from facility fees charged to patients and insurers for use of infrastructure, surgical equipment, nursing staff, and support services.

Differentiator

Problem solved

Functional benefit

Products and services

• Arkansas Surgical Hospital Physician-owned specialty surgical hospital in North Little Rock, Arkansas (51% owned by Medical Facilities) specializing in orthopedic and spine surgeries, breast oncology, reconstructive surgeries, pain management, and diagnostic imaging including CT, MRI, and myelography. The facility has 13 operating rooms and 126,000 sq ft of space, and is accredited by the Accreditation Association for Hospitals and Health Systems.
• Sioux Falls Specialty Hospital Specialty surgical hospital in Sioux Falls, South Dakota (majority owned by Medical Facilities) providing orthopedics, pain management, gastroenterology/urology, and ENT services, with advanced diagnostic imaging including high-field 3T MRI and open upright MRI scanners. Also provides urgent care, primary care, and occupational health services. The facility has 15 operating rooms and 76,000 sq ft of space.

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

One partnership is on record.

• Avera McKennan HospitalminorOthersSioux Falls Specialty Hospital is located adjacent to the campus of Avera McKennan Hospital in Sioux Falls, South Dakota, providing geographic proximity and potential referral relationships.

Scale indicators6 records

Recent moves12 records

Expansion highlights4 records

Broad incumbents

• Tenet Healthcare: Tenet Healthcare (NYSE: THC) operates acute care hospitals and ambulatory surgery centers through its USPI segment. Comparable through its ambulatory surgery center portfolio and specialty surgical offerings, though as a much larger diversified hospital operator with broader service lines than Medical Facilities' specialty focus.
• Community Health Systems: Community Health Systems (NYSE: CYH) operates acute care hospitals in non-urban and mid-sized US markets. Comparable through its hospital operations and payor mix including Medicare/Medicaid exposure, though CYH operates general acute care hospitals rather than specialty surgical facilities.
• Encompass Health: Encompass Health (NYSE: EHC) operates inpatient rehabilitation hospitals across the US. Comparable as a specialty hospital operator with focus on defined clinical specialties and physician-driven referrals, though its specialty is rehabilitation rather than surgical care.
• Select Medical Holdings: Select Medical Holdings (NYSE: SEM) operates specialty hospitals (including long-term acute care and rehabilitation) and outpatient rehabilitation clinics. Comparable through its specialty hospital focus and physician-partnered model, though Select Medical's specialty mix is more weighted toward rehabilitation rather than surgical procedures.
• HCA Healthcare: HCA Healthcare (NYSE: HCA) is the largest for-profit hospital operator in the US with a broad portfolio of acute care and specialty facilities. Comparable as a major US hospital operator with outpatient surgery capabilities, though significantly larger and more diversified than Medical Facilities' specialty surgical hospital focus.
• Universal Health Services: Universal Health Services (NYSE: UHS) operates acute care hospitals and behavioral health facilities across the US. Comparable through its hospital operations and payor relationships, though it offers broader acute care and behavioral health services rather than Medical Facilities' specialty surgical focus.
• Ardent Health Partners: Ardent Health Partners (NYSE: ARDT) operates acute care hospitals and ambulatory services across multiple US markets. Comparable through its multi-site healthcare delivery model and payor relationships, though it offers broader general acute care services rather than Medical Facilities' specialty surgical hospital focus.

Direct peers

• Surgery Partners: Surgery Partners (NASDAQ: SGRY) is one of the largest operators of short-stay surgical facilities in the US, operating ambulatory surgery centers and surgical hospitals. Directly comparable to Medical Facilities in business model, specialty focus on outpatient surgical procedures, and revenue model based on facility fees from commercial and government payors.
• National Surgical Hospitals: National Surgical Hospitals is a physician-partnered operator of short-stay surgical hospitals focused on orthopedics, spine, and other surgical specialties. Highly comparable to Medical Facilities given the physician partnership model, specialty hospital focus, and overlapping service mix; notably, Medical Facilities CFO David Watson previously served as SVP and CFO of National Surgical Hospitals.

Emerging players

• SurgCenter Development: SurgCenter Development is a privately-held developer and operator of ambulatory surgery centers, partnering with physicians. Comparable through its ASC focus, physician partnership model, and outpatient surgical service mix, though focused on ASCs rather than surgical hospitals.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/medical-facilities-corporation

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Subsidiaries2 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Medical Facilities