Pacific Health Care Organization Reports 11% Revenue Growth and 21% Net Income Increase for Nine Months Ended September 30, 2024

Pacific Health Care Organization, Inc. reported its financial results for the nine months ended September 30, 2024, showing notable growth in revenues and profitability compared to the same period in 2023. Total revenues increased to $4,524,390, an 11% rise from $4,071,454 in the prior year. Key revenue segments included Medical Case Management, which saw an 18% increase, and Medical Bill Review, which also rose by 17%. However, HCO revenue experienced only a 2% increase, attributed to a decrease in annual notifications from a customer with a reduced employee headcount.

For the three months ended September 30, 2024, total revenues reached $1,527,725, a 9% increase from $1,405,863 in the same quarter of 2023. Significant contributors to this growth included a 26% increase in MPN revenue and a 31% rise in Medical Case Management revenue. Despite the revenue growth, net income for the third quarter slightly decreased to $174,863 from $179,121 in the previous year, primarily due to increased expenses.

Total expenses for the nine-month period rose to $4,005,627, an 8% increase from $3,696,875 in 2023. This rise was driven by higher general and administrative costs, professional fees, and salaries, which increased by 6% due to a discretionary bonus and the addition of one employee. Notably, bad debt provision expenses decreased significantly, reflecting successful collection efforts.

The company reported net income of $587,822 for the nine months ended September 30, 2024, a 21% increase from $486,657 in the same period of 2023. This growth was supported by increased operational income and interest income from U.S. Treasury bills.

As of September 30, 2024, total assets were $12,138,990, up from $11,823,890 at the end of 2023, with total stockholders’ equity increasing to $11,391,441. Cash on hand decreased slightly to $2,545,913 from $2,565,992 at the end of 2023.

In October 2024, the company received notice of termination from a significant customer, which is expected to materially impact future operating revenues. The company plans to phase out associated services during the fourth fiscal quarter of 2024. Despite this challenge, the company remains in good standing with the customer, and no other material subsequent events were noted.