Medical Care International: turning around

Medical Care International operates the largest chain of freestanding ambulatory surgery centers in the United States. The company's ambitious expansion program during its 1981-2 start-up stage had to be scaled back drastically when extended deep losses were experienced. Centers with the highest losses were sold, and improvements in the management of the remaining units were implemented in 1984 and 1985. These measures, including forging sounder relationships with local physicians, effected a turnaround leading to the company's first year of profitable operations in 1986. Recent favorable developments in Medicare reimbursement practices and industry trends paint a bright picture for the company's future.