Healthcare IPO: IPCM The Hospitalist Company

IPC The Hospitalist Company (IPCM) a company that is focused on providing, managing and coordinating the care of hospitalized patients in over 300 US hospitals in 18 states, is expected to float a public offering of its stock this week.

All quotations are from the company's most recent S-1 filings with links provided.

IPC (IPCM)
Business Overview (from prospectus)

We are a leading provider of hospitalist services in the United States. Hospitalist medicine is organized around inpatient care, primarily delivered in hospitals, and is focused on providing, managing and coordinating the care of hospitalized patients. We believe we are the largest dedicated hospitalist company in the United States based on revenues, patient encounters and number of affiliated hospitalists. Our over 550 affiliated hospitalists, including physicians, nurse practitioners and physician assistants, provide hospitalist solutions at over 300 hospitals and other inpatient facilities in sixteen states. We have had more than five million patient encounters since the beginning of 2004. Collectively, our affiliated hospitalists work with more than 21,000 referring physicians and 1,000 health plans. Our early entry into the emerging hospitalist industry has permitted us to establish a reputation and leadership position that we believe is closely identified with hospitalist medicine.

Offering: 4.7 million shares at $15.00 - $17.00 per share. Net proceeds of approximately $38.3 million will be used to repay debt and for general corporate purposes.

Lead Underwriters: Credit Suisse, Jefferies

Financial Highlights:

Net revenue for the nine months ended September 30, 2007 was $137.4 million, an increase of $29.5 million, or 27.3%, from $107.9 million for the nine months ended September 30, 2006. Of this $29.5 million increase, $20.7 million, or 70.2% was attributable to same-market area growth and $8.8 million was attributable to revenue generated from completed acquisitions and new geographical areas opened during 2006 and 2007... We recorded net interest expense of $0.9 million for the nine months ended September 30, 2007, as compared to net interest expense of $0.8 million for the nine months ended September 30, 2006... Net income decreased to negative $3.7 million for the nine months ended September 30, 2007, as compared to $0.3 million for the nine months ended September 30, 2006 and our net income margin decreased to a negative 2.7% from a positive 0.3% for the same periods.

Competition:

The healthcare industry is highly competitive, and the market for hospitalists within this industry is highly fragmented. We believe we are the largest dedicated hospitalist company in the United States based on revenues, patient encounters and number of affiliated hospitalists. In each of our local markets and throughout the United States, there are hospitalist groups of varying sizes, as well as privately-owned hospitalist companies, with which our practice groups compete.

Companies in other segments of the healthcare industry, such as emergency department service companies, also provide hospitalist services. Competitors of this nature on a national basis include companies such as Team Health and EmCare, each of which may have greater financial and other resources available to them, including greater access to physicians and greater access to potential customers.

In addition, because of the fragmented nature of the hospitalist market and the ability of physicians to provide services in any hospital where they have certain credentials, competition for growth in existing and expanding markets is not limited to our large competitors with substantial financial resources available to them. We also compete against local physician groups for qualified physicians, and sometimes with hospitals themselves to provide hospitalist services.

We are also dependent on our affiliated hospitalists to provide services and generate revenue. Competition for qualified physicians to act as hospitalists is intense. We compete with many types of healthcare providers, including teaching, research and government institutions, hospitals and other practice groups, for the services of such physicians.

Additional Resources:

• Company website
• Online road show
• Press Release: 'IPC The Hospitalist Company Acquires San Antonio-Based Hospitalist Group'
• AP: 'IPC The Hospitalist sets terms of IPO'
• VentureWire: 'IPC The Hospitalist Sets IPO At 4.7M Shares, $15-$17 A Share'