|We provide quality, coordinated healthcare and physician services in Southern California and San Antonio, Texas. We own and operate seven hospitals, with a total of approximately 1,056 licensed beds, and a network of 18 specialty and primary care clinics. Our hospitals are located in diverse, high density population areas within Southern California and San Antonio and maintain leading market positions in the areas they serve. We also manage the provision of physician services through Medical Groups that consist of physician networks of primary care and specialty physicians. Our Medical Groups provide physician services to approximately 181,400 enrollees. Based on our enrollment, our combined Medical Groups represent one of the largest in Southern California and has contracts with nearly all the major (non-Kaiser) HMOs operating in the region. We believe the coordination of our hospitals and Medical Groups will create an efficient healthcare delivery system that positions us to drive growth and profitability.
We operate both our hospitals and Medical Groups by applying highly disciplined, data-driven management to the provision of quality care. Through this in-depth and data-driven approach to analysis and application of various operational and financial metrics, we have been able to achieve a highly-efficient cost structure which enables us to adjust our operations to provide services that generate higher margins and revenue growth. Our management's expertise in executing our operating model has enabled us to increase profitability across a diverse mix of payors and the flexibility to adapt to economic and regulatory changes. Our operating model also allows us to be well-positioned for the future, as we believe that the most cost-efficient providers will be the ones who benefit in this rapidly changing economic and regulatory environment.