* Q1 loss/unit $0.05 vs est. $0.06
* Revenue up 7 pct to $51.4 mln
* Operating expenses up 17 pct
May 13 (Reuters) - Medical Facilities Corp DR_u.TO, an operator of specialty surgical hospitals, posted a narrower-than-expected quarterly loss, as operating expenses increased 17 percent.
For the first quarter, net loss was $1.7 million, or 5 cents per share, compared with net income of $1.6 million, or 5 cents per share, a year ago.
Total facility service revenue rose 7 percent to $51.4 million.
Analysts on average were expecting the company to post a loss of 6 cents per share, on revenue of $49.6 million, according to Thomson Reuters I/B/E/S.
Operating expenses rose 17 percent to $34.5 million, hurt partly by higher drugs and supplies expenses.
The company said it expects to finish expansion at its Black Hills Surgical Hospital in South Dakota in the third quarter of 2010.
Shares of the Toronto-based company closed at C$10.5 Wednesday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Unnikrishnan Nair)