Surgery Partners Reports Surge in Higher Acuity Procedures and Impressive Financial Growth
2024-05-08
Surgery Partners, a prominent operator of short-stay surgical facilities, recently conducted its First Quarter 2024 Earnings Call, where key figures like David Doherty (CFO), Eric Evans (CEO), and Wayne DeVeydt (Executive Chairman) shared crucial insights regarding the company's performance and future prospects.
During the call, David Doherty issued a caution regarding forward-looking statements and underscored the risk factors that could potentially influence future outcomes. Notably, Surgery Partners announced impressive financial results for the first quarter of 2024, with net revenue hitting approximately $717 million, marking a 7.7% increase compared to the previous year. Additionally, adjusted EBITDA experienced significant growth, reaching $97.5 million, an 8.2% rise from the prior year.
A standout achievement highlighted during the quarter was the surge in higher acuity procedures, particularly total joint replacements, which witnessed a remarkable 54% growth from the first quarter of 2023. The company's strategic focus on advancing higher acuity procedures aligns with the industry trend of transitioning such procedures to outpatient settings, thereby contributing to the expansion of short-stay surgical facilities.
Operating within a highly fragmented sector encompassing over 6,000 ambulatory surgical facilities and an estimated total addressable market of $150 billion, Surgery Partners executed a $60 million transaction in early January and aims for a minimum annual capital deployment of $200 million. The revised outlook anticipates a minimum of 11% growth in net revenue and a 15% increase in adjusted EBITDA for the full year 2024.
The company's growth trajectory is further bolstered by its effective implementation of initiatives across various domains such as business development, recruitment, managed care, procurement, revenue cycle, and operations. By concentrating on high acuity specialties, specific managed care strategies, and acquisitions, Surgery Partners endeavors to propel revenue growth and fortify its financial performance.
Looking to the future, Surgery Partners reiterates its commitment to long-term objectives, including managing the total net debt-to-EBITDA ratio, capital deployment in acquisitions, and revenue growth through a blend of organic growth and acquisitions. The company's strategic growth approach, robust financial performance, and dedication to delivering top-tier care position it favorably for sustained success in the ever-evolving healthcare landscape.