Despite the overpublicized (and loony) beliefs of a certain actor, the future of the psychiatric care market remains promising. As a consolidating force in this fragmented industry, Psychiatric Solutions (NASDAQ:PSYS) would still seem to have the opportunity to put its investors in a comfortable state of mind.

Revenue in the second quarter climbed 23% for this operator of inpatient facilities. While the majority of that growth came from new facilities, the 9.5% same-facility growth is certainly nothing to sniff at -- especially because it marks what I believe is three years' worth of consecutive quarterly same-facility growth. This growth was fueled by a mix of higher patient days (6.7%) and increased revenue per patient day (2.7%). More volume, higher prices -- it's a winning combination.

The company continues to streamline its operations and drive better profitability. Pre-tax margins increased by nearly 3 points, and same-facility EBITDA (earnings before interest, taxes, depreciation, and amortization) margins improved to 18.8% from 16.1%. On the bottom line, net income rose 77% for the quarter. I'm also happy to point out that cash flow growth has been strong thus far.

Though management did not raise guidance with this report, it did at least confirm the prior range of earnings estimates. With the acquisition of facilities from Ardent closing earlier this month, reported year-over-year revenue will jump significantly when the company announces its third-quarter results. Over time, I would expect Psychiatric Solutions to replicate its success with these acquired facilities and drive better profitability to complement the revenue boost.

I've liked both this company and this stock since I first started digging into the story around the beginning of the year. And thus far, the stock has done quite well -- rising by more than a third this year. I certainly wouldn't be in any hurry to sell this winner. The company continues to perform, and the market for quality inpatient psychiatric care remains both underserved and highly fragmented. New investors may want to hope for a dip in the price before climbing aboard, but they also need to realize that they may be waiting for a while.

For prior takes on Psychiatric Solutions, click below:

Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).