AmSurg is in a position to monetize this year, as recent acquisitions are poised to show benefits, according to a Seeking Alpha report.
Here are eight key notes:
1. There are some concerns in the market, including AmSurg's unsuccessful attempts to purchase TeamHealth last year. The healthcare market is also expected to experience volatility throughout the election year.
2. Regulatory changes from the ACA — focusing on quality and cost-effectiveness — could be favorable for ASCs as the low-cost, high quality outpatient care setting. Data transparency trends could also boost ASC use.
3. AmSurg is a leading ASC company in consolidation as it works toward offering a full physician services platform and geographic expansion, according to the report. The company is looking to improve top line and cash flow growth rates.
4. The company can expect up to 2 percent growth in volume from uninsured patients who now are getting insurance, especially coupled with more services and geographic expansion from recent acquisitions.
5. Once a gastroenterology-heavy company, AmSurg has diversified to add anesthesiology and pain management services. The Sheridan Health acquisition at the end of 2014 provided scale and leadership in several services:
• Children's services
• Emergency medicine
6. The Sheridan acquisition is expected to continue high single-digit growth. The company acquired Valley Anesthesiology & Pain Consultants as well, with revenue per physician of around $650,000.
7. The company reported ASC segment growth over the past few years. AmSurg had a 9 percent procedure growth in 2013, 2 percent in 2014 and 6 percent in the first three quarters of 2015. The same center revenue increase was up 6 percent for the first three quarters of 2015. Additional, the unconsolidated centers in operation growth jumped 50 percent in 2013, 200 percent in 2014 and 44 percent in the first three quarters of 2015.
8. Sheridan has a major presence in Florida and with the state's acceptance of the ACA, the company reported ambulatory services operations growth of 31 percent in 2013, 29 percent in 2014 and 33 percent in 2015. Physician services was up 15 percent in 2014 and 13 percent for the first three quarters of 2015.