How Surgery Partners is faring after suffering hefty Q2 losses: 6 things to know

Mary Rechtoris - Print  |

Since Surgery Partners released its second quarter results, the company's shares have declined and investors may be wary of how the company will fare moving forward, according to Forbes.

Here are six things to know:

1. Surgery Partners' year-over-year adjusted EBITDA fell 19 percent for the second quarter. The company's net losses attributable to Surgery Partners were $4.5 million.

2. The company also reduced its 2017 adjusted EBITDA guidance to between $174 million and $181 million. Previously, the company had expected adjusted EBITDA between $197 million and $206 million.

3. Since Aug. 8, Surgery Partners' equity has declined 42 percent.

4. In an investor call, Surgery Partners executives said they are seeking outside experts at Alix Partners to help with integration and ways to generate cost synergies.

5. An industry investor told Debtwire the company's second quarter earnings indicate Surgery Partners may likely be taking on patients with an overall poor payer profile.

6. However, Surgery Partners CEO Michael Doyle said the losses are due to a decline in physician practice volume and payer mix moving away from commercial payers to government payers.

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