The Advisory Board Company saw 15 percent growth in contracts and revenue in 2014 as more U.S. healthcare providers turned to their services.
The Advisory Board’s revenue for the last quarter also increased 15 percent year-over-year to $150.2 million, and for the nine-months ending December 31, the company’s revenue increased by 14 percent, to $436 million. The value of consulting contracts, meanwhile, also increased 15 percent, to $601.8 million.
For the nine month period, the Advisory Board posted adjusted earnings (before interest, taxes, depreciation, and amortization) of $72 million, up 9 percent from 66 million year-over-year. Adjusted net income for the nine month period as $36.4 million or $1.00 per diluted share, a 12 percent increase to $32.3 million, or $0.88 per diluted share.
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"Overall, 2014 was another successful year for The Advisory Board Company, continuing our track record of incredible value delivered to our members, transformational impact on the industries we serve, mid-teens growth, and strong margin performance,” said Robert Musslewhite, chairman and CEO of the publicly traded healthcare focused consultancy.
This year, Musslewhite said, the company is expecting to increase revenue 15 percent and “significant margin expansion."
The consulting firm has had a recent growth spurt, acquiring Royall & Company, a higher education services firm, and Clinovations, a small health IT company located nearby in Washington D.C. Clinovations is joining the company’s Southwind division, which helps improve hospital-physician alignment and counts some 200 clients.
Evolent Health, a population health management venture jointly owned by the Advisory Board, UPMC Health Plan and private equity outfit TPG Growth, is also growing in areas such as utilization management and electronic health records optimization.
The Advisory Board Company also just launched two new products. It’s new “Purchased Services Management Program” is offering outsourcing for food, transcription, clinical engineering and facilities maintenance, areas that collectively comprise as much as 40 percent of a hospital’s expenses, Musslewhite said.
The other product launch is in the Advisory Board’s other market — higher education, an industry under as much affordability pressure as healthcare. Its “Enrollment Management Forum” is aimed at addressing topics like revenue management, “maximizing student yield,” and “meeting the student success imperative.”
Twitter: @AnthonyBrino