Concentra Group Holdings Reports 7.1% Revenue Growth in Q1 2025

Concentra Group Holdings Parent, Inc. reported a revenue increase of 7.1% for the first quarter of 2025, reaching $500.8 million compared to $467.6 million in the same period of 2024. The growth was primarily driven by a rise in revenue per visit and the acquisition of 72 occupational health centers through the recent purchase of Nova Medical Centers. The company’s net income for the quarter was $40.6 million, down from $50.3 million a year earlier, resulting in earnings per share of $0.30, compared to $0.47 in the prior year.

Total costs and expenses rose to $420.4 million, up from $392.4 million in the previous year, with the cost of services accounting for $357.1 million, or 71.3% of revenue. This represents a slight improvement in efficiency compared to 72.1% in the prior year, attributed to operational efficiencies and a shift from contract to employed clinicians. General and administrative expenses also increased to $46.7 million, reflecting costs associated with the company's transition to a standalone entity and the Nova acquisition.

In terms of operational metrics, Concentra reported a total of 3.2 million patient visits during the quarter, a 1.5% increase from the previous year. The company also noted a 3.2% rise in visits per day volume, with significant contributions from employer services. Revenue per visit increased by 5.6%, driven by higher reimbursement rates for workers' compensation and employer services. As of March 31, 2025, Concentra operated 627 occupational health centers and 160 onsite health clinics across the United States.

Strategically, the company completed the acquisition of Nova Medical Centers on March 1, 2025, for approximately $265 million, financed through a combination of new debt and cash reserves. This acquisition expands Concentra's footprint to over 775 occupational health centers and onsite clinics in 42 states. Additionally, the company has entered into an agreement to acquire Pivot Onsite Innovations for $55 million, expected to close in the second quarter of 2025, further enhancing its onsite health clinic operations.

Looking ahead, Concentra anticipates continued growth through strategic acquisitions and operational improvements. The company remains focused on enhancing its service offerings and expanding its market presence while managing its debt levels, which include a $950 million term loan and a $450 million revolving credit facility. As of March 31, 2025, Concentra had $52.1 million in cash and $386.4 million available under its revolving credit facility, positioning it well for future investments and operational needs.