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Team Health expects 3Q revenue to rise 26%, ups full-year guidance

October 23, 2015

Team Health Holdings Inc. (NYSE: TMH) reports third-quarter net revenue is expected to be $899.2 million, up 26.2% from the third quarter of 2014. Team Health is scheduled to report its third-quarter results on Nov. 3.

In addition, the Knoxville, Tenn.-based firm also updated its full-year 2015 outlook for projected net revenue growth to an increase of between 25.0% to 26.0% from an earlier estimate that called for growth of between 24.0% to 26.0%.

Team Health’s operations include healthcare staffing provider D&Y, which ranks on Staffing Industry Analysts’ list of largest US healthcare staffing providers. However, the company has significant other healthcare operations, including clinical outsourcing.

Acquisitions and hybrid acquisitions developed from new hospital contracting opportunities are expected to contribute the majority of net revenue growth between quarters, followed by net new sales and increases in same contract revenue, according to the company. Within same contract revenue, Team Health expects both fee for service volume and pricing to be modestly positive, but growth in pricing will be constrained by declines in Medicaid parity revenue between quarters.

As reported earlier, Team Health this week announced it rejected a merger offer by AmSurg Corp. AmSurg reported its proposal has a total enterprise value of $7.8 billion, based on AmSurg’s closing stock price Oct. 19.