To address the need for more physicians arising from the coronavirus outbreak, Adtalem Global Education Inc. ATGE announced that it will contribute a significant influx of new primary care physicians to the healthcare system.
Adtalem’s two medical schools, American University of the Caribbean School of Medicine (AUC) and Ross University School of Medicine (RUSM) announced the addition of more than 900 physicians to U.S. and Canada residency programs during 2020. This brings the total number of alumni at both the schools to 21,700. AUC and RUSM students achieved first-time residency attainment rates of 91% and 93.5%, respectively.
Lisa Wardell, chairman and CEO of Adtalem Global Education, said, “As the COVID-19 pandemic tests the capacity of an already strained primary care system experiencing a growing shortage of physicians, 70% of Adtalem institution’s students and graduates who attained residencies will enter residencies in internal medicine, family medicine or pediatrics – the heart of primary care.”
The company added further that qualified students at AUC and RUSM can start their medical education three times per year — in January, May and September. This additional flexibility enables students to receive their Doctor of Medicine degree at more frequent intervals.
Apart from AUC and RUSM, Adtalem’s Chamberlain University has graduated more than 3,000 Bachelor of Science in Nursing students since January, bringing the total number of Chamberlain University alumni to more than 76,000.
Healthcare Institutions Driving Sales/Earnings
One of the largest providers of healthcare professionals in the United States, Adtalem’s health care and international institutions have shown significant improvement in revenues and profitability since fiscal 2013. In particular, health care institution Chamberlain’s new and total student enrollment was solid in the fiscal second quarter. The metrics improved 3.6% and 1.2%, respectively, from a year ago. Notably, the company’s Medical and Healthcare segment contributed 82.7% to fiscal second-quarter 2020 total revenues.
Share Price Performance
Adtalem’s shares have underperformed the industry so far this year. Nonetheless, its cost-saving initiatives, transformation strategy and continued focus on stackable programs are likely to drive growth. This is suggested by its three-five year expected EPS growth rate of 12.5%.
Meanwhile, it is emphasizing on partnering with corporations, hospitals, government agencies and professional organizations to design education programs aimed at teaching new skills to employees.
Adtalem — which shares space with Strategic Education Inc. STRA, American Public Education, Inc. APEI and Universal Technical Institute, Inc. UTI in the Zacks Schools industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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