25 things to know about AmSurg

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Here are 25 things to know about AmSurg, the ambulatory surgery center management and development giant.

1. AmSurg includes 248 outpatient surgery centers across the country. Last year, 150 of AmSurg's centers performed gastrointestinal endoscopy procedures, 37 performed ophthalmology procedures and eight centers performed orthopedic procedures. Fifty-one of AmSurg's centers are multispecialty.

2. The company was established in 1986 and it is known for its focus on single-specialty gastroenterology and ophthalmology ASCs. In the last five to 10 years, however, the company has heavily expanded into orthopedics and mutlispecialty center.

3. In 2014, the company's same-center ambulatory services revenues — which made up 91 percent of the total centers — increased 0.7 percent.

4. The number of procedures performed at AmSurg ASCs increased by 35,589, or 2 percent, in 2014. The Ambulatory Services revenues were up 5 percent, hitting $1.1 billion last year. Centers acquired in 2014 generated $23.5 million in revenue last year. ASCs that were deconsolidated in 2014 generated $9.5 million last year.

5. Last year, there was a $9.9 million increase in supply costs due to the additional supply costs of acquired centers. The acquired centers were primarily multispecialty centers, and they pushed supply costs up to $163 million last year.

6. AmSurg has its origins in Practice Development Associates, a consulting and a turn-key resource. It was co-founded by David Manning, the company's current executive vice president and chief development officer, and Rodney Lunn, who is no longer with AmSurg.

7. In 1992, PDA gained funding from a group of local Nashville investors and Healthways, Inc. (known as American Healthcorp at the time). This was when PDA began to turn into AmSurg.

8. Last year, a transformative year for the company, AmSurg completed the $2.35 billion acquisition of Sheridan Healthcare, an anesthesia provider. The purchase of Sheridan was a huge move toward diversification as it made the company an ASC management and an anesthesia services company.     

9. Today, AmSurg partners with more than 1,800 physicians at outpatient surgery centers across the nation.

10. The company reported a huge net revenue increase in the first quarter of 2015 — net revenue was up 12 percent to $570.4 million. The ambulatory services net revenue increased 9 percent to $283.9 million.

11. AmSurg acquired one new center in the first quarter of 2015 and a second center through a new joint venture partnership. There were seven centers under a letter of intent at the end of the first quarter, and two centers under development with one center expected to open this year.

12. AmSurg's net revenues increased 53 percent from 2014 to $1.62 billion, primarily due to Sheridan's financial results since the acquisitions. Sheridan generated revenue of more than $1 billion in 2014, primarily driven by outsourcing physician services including anesthesiology, emergency medicine and radiology. AmSurg experienced a net revenue increase of $512 million associated with the Sheridan acquisition.

"The acquisition of Sheridan substantially strengthens the value proposition we can now present, as many health systems are also seeking to reduce their subsidization of hospital-based physician services, reduce quality deficits and stay abreast of technology and reporting requirements for value-based reimbursement arrangements," wrote President and CEO Christopher Holden in the 2014 Annual Report.

13. AmSurg experienced an operating income increase of $76.7 million associated with the Sheridan acquisition. Operating income for the entire year increased 19 percent to $394.4 million.

14. The 2015 same-center revenue is expected to increase 2 percent to 3 percent for ambulatory services and the contract organic revenue growth is expected at 6 percent to 8 percent in physician services.

15. The adjusted EBITDA is projected at $454 million to $460 million for the entire year of 2015. Adjusted EBITDA for 2014 was $304.5 million, up 62 percent from 2013.

16. Christopher A. Holden serves as president, director and CEO of AmSurg. He is a healthcare industry veteran with more than 28 years of experience. Claire M. Gulmi serves as executive vice president, CFO, secretary and director.

17. Phillip A. Clendenin is president of ambulatory services. He also has more than 20 years of healthcare industry experience.

18. The AmSurg leadership team received significant raises this year. President and CEO Christopher Holden received a 30 percent raise, bumping his salary up from $766,000 to the $1 million mark, while president of ambulatory services Philip Clendenin received a 17 percent raise to $425,000.

19. In 2014, ASC reimbursement rates increased 1.2 percent, positively impacting the company's Ambulatory Services revenue by around $6.5 million. CMS increased ASC reimbursement 1.9 percent for 2015, which AmSurg predicts will positively impact 2014 revenues by $9 million.

20. The company has remained publicly traded since 1997. Just last week, 11 analyst firms have given AmSurg stock an average rating of "buy."
https://www.beckersasc.com/asc-transactions-and-valuation-issues/amsurg-receives-average-buy-rating.html

21. Since the Sheridan acquisition, AmSurg's acquisition activity has sped up. It has also acquired two radiology groups and an anesthesia practice servicing one of the ASCs in Q1 of 2015.

22. AmSurg has also announced that it is relocating its operations to a larger location in Sunrise, Fla. It signed a lease on 222,000-square-foot location and will pay $1.7 million in rent from Sept. 1, 2016 to April 30, 2017. It also plans to expand the location by 55,000 square feet.

23. The company is involved in numerous charitable activities. It recently gave donations to the Nashville Rescue Mission, which provides food, clothing and shelter to the local homeless community.

24. AmSurg stock has an average 12-month price target of $67.45. The company's stock has a 50-day moving average of $65 and a 200-day moving average of $58.

25. AmSurg members have been distinguishing themselves in a number of ways. AmSurg partner Louis Korman, MD, of The Endoscopy Center of Washington D.C., was awarded the 2015 Distiguished Clinician Award by the American Gastroenterological Association.

 

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