10 things to know about Surgery Partners

Headquartered in Brentwood, Tenn., Surgery Partners is a leading operator of surgical and ancillary services. It touts a portfolio of 124 surgical facilities in the U.S., including 106 ASCs and 18 surgical hospitals across 32 states.

Here are 10 things to know.

1. Surgery Partners owns a majority interest in 84 of the facilities in its portfolio, and about 77 percent of the facilities are multispecialty focused. In 2017, they generated $1.2 billion in revenue altogether.

2. The surgical facility services segment accounted for about 93 percent of Surgery Partners' total revenue for the fiscal year ending on Dec. 31, 2017. About 38 percent of the company's patient service revenues last year came from government sources, primarily Medicare. Fifty-four percent of patient service revenues came from private insurance.

3. On Aug. 31, 2017, Surgery Partners completed its acquisition of National Surgical Healthcare for about $760 million, adding NSH's surgical facilities to its portfolio. The transaction created a network of more than 5,000 physicians specializing in orthopedic surgery, spine and back, pain management and neurosurgery.

4. Bain Capital Private Equity provided some funding for the NSH transaction. Simultaneously with the deal's closing, Bain Capital purchased H.I.G. Capital's 54 percent equity stake to become Surgery Partners' controlling stockholder.

5. Surgery Partners reported a 17.1 percent year-over-year increase in revenues for 2017, totaling $1.3 billion. Same-facility revenues also went up, increasing 4.7 percent from 2016. The company reported net losses of $40 million for the fourth quarter of 2017, with $38.7 million of those losses attributable to the Tax Cuts and Jobs Act. The company's revenue is expected to exceed $1.75 billion in 2018.

6. Surgery Partners employed about 10,600 individuals, 7,300 of which were full-time, as of Dec. 31, 2017.

7. Surgery Partners experienced significant leadership shake-ups in 2017 and early 2018. Former Surgery Partners executive Michael Doyle, who helped the company become a leading provider of outpatient surgical procedures, abruptly stepped down from his role as CEO in September 2017 after the company posted second quarter losses of $4.5 million in August 2017. Mr. Doyle resigned from the company's board of directors Feb. 16, 2018.

8. Wayne DeVeydt was appointed CEO of Surgery Partners in January 2018, succeeding interim CEO Clifford Adlerz. Mr. DeVeydt previously served as executive vice president and CFO of Anthem, where he had also held various other leadership roles. He serves on the board of directors for NiSource, a U.S. utility company, and Myovant Sciences, a biopharmaceutical company focused on women's health and endocrine diseases.

9. Thomas Cowhey, a longtime Aetna executive, will join Surgery Partners April 2 to serve as executive vice president and CFO. In February, the company created a chief human resources officer role and named Angela Justice, PhD, to the position.

10. Surgery Partners was formed in 2004 with a physician-centric approach. It completed an initial public offering in 2015 and now serves more than 600,000 patients annually.

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