Being the parent of two small children means countless visits to the pediatrician. Mysterious coughs, rashes, and poops are the norm for young children, so it's nice to know there's somebody who specializes in mysterious coughs, rashes, and poops.

Even more comforting is knowing that care for premature babies has advanced to extraordinary levels. We had first-hand experience with this past February when our second daughter arrived two months early. The Neonatal Intensive Care Unit (NICU) at our hospital was truly remarkable.

Much to my surprise, I discovered a company that serves this particular specialty. PediatrixMedical Group (NYSE:PDX) provides physician services for newborn, maternal-fetal, and other pediatric subspecialty care, primarily within hospital-based NICUs. And guess what? Not only are its 690 physicians good at what they do, but the company is solidly profitable as well.

Despite the sometimes-onerous payment discounts placed on physicians by health insurance companies, Pediatrix has grown into a $1.4 billion company, sporting $100 million in earnings this past year on almost $600 million in revenue. Analysts expect earnings to grow another 15% in the next fiscal year. All this, and it still generated $112 million in free cash flow (FCF) over the past 12 months.

Good cash management is important for any business, especially the perfect ones, but even more so in the health-care industry. Regulations and insurance issues are constantly nipping at the heels of these types of businesses, so to see Pediatrix so carefully manage its assets is an encouraging sign. We see further evidence of this on the balance sheet: $31 million in cash and only a tad over $1 million in debt.

There are two current downsides to the stock. I find it a bit expensive, considering that it trades at 2.4 times both book value and sales, and its enterprise value-to-FCF ratio is a bit high at 13. The other thing is that the stock is 95% held by institutions and only 6% by insiders. I'd like to see less Wall Street influence and more owner influence.

Still, the health-care industry can be the source of big payoffs for investors. People looking to profit from the industry other than by buying stocks like Amgen (NASDAQ:AMGN), Pfizer (NYSE:PFE), or Wellpoint (NYSE:WLP) may want to consider Pediatrix at lower prices. After all, given the millions of coughs, rashes, and poops, it probably won't be going out of business anytime soon.

Fool contributor Lawrence Meyers does not own shares of any stocks mentioned in this article, but is on a first-name basis with his children's pediatrician.