Four companies that run ASCs recently released financial results for the third quarter.
Here's how they fared:
1. Surgical Care Affiliates/Optum: OptumHealth reported third quarter revenue jumped 34.4 percent year over year, hitting $8.1 billion due to the expansion of behavioral health and overall line growth. OptumCare's mission is to form physician-led health systems that lower the cost of care and deliver a great patient experience while maintaining good outcomes.
Surgical Care Affiliates is part of OptumCare and includes several surgery centers nationwide. During the call, Mr. Witty said SCA's third quarter cardiovascular operations were up 13 percent and spine procedures grew 14 percent year over year. Total joint replacements jumped 39 percent during the quarter as compared to last year. "That's an example of one other element of [the OptumCare] portfolio in a significant point of growth for us and it fits very nicely within the cluster of other services we offer in key geographies and part of our comprehensive services for patients."
2. HCA Healthcare: Nashville, Tenn.-based HCA Healthcare reported revenues of nearly $12.7 billion in the third quarter of 2019, a year-over-year increase of about $11.5 billion. HCA reported 235,853 same-facility outpatient surgeries in the third quarter, a year-over-year increase of 2.6 percent. Inpatient surgery cases increased 2.2 percent for the quarter year over year, growing from 132,509 cases to 135,379 cases. Revenues for the nine months ended Sept. 30 hit $37.8 billion, up from $34.4 billion in last year's third quarter. During that period, gains on sales of facilities amounted to $420 million, and losses on retirement of debt reached $9 million.
3. Surgery Partners: Despite $452 million in third quarter 2019 revenues, Surgery Partners posted a net loss of $24.8 million for the quarter. Revenues increased 4.5 percent to $452 million, up from $432.4 million at the same time last year. Revenues-to-date hit $1.3 billion, up from $1.28 billion in 2018. The company's net losses decreased from this time last year, dropping from $29.2 million to $24.8 million. For the year to date, the company posted a net loss of $82 million, which is more than the $81.9 million net loss the company posted for the same period in 2018. Revenue per case increased in the third quarter from $3,064 in 2018 to $3,268 in 2019. To date, revenue per case increased from $3,045 in 2018 to $3,205 in 2019.
4. United Surgical Partners International/Tenet Healthcare: Tenet Healthcare ended the third quarter with earnings growth and a net loss stemming from refinanced debt. Tenet's adjusted earnings for the third quarter before interest, tax, depreciation and amortization were $631 million, up from $577 million from the same period the year prior. The company's ambulatory care segment, United Surgical Partners International, reported 6.9 percent revenue growth and 5.1 percent case volume increase. Revenue per case was up 1.7 percent for the quarter. Surgical revenue-per-case rose 2.5 percent and surgical cases increased 4.4 percent in the ambulatory segment.