Surgery Partners reports fraction of typical volumes; negative earnings projected: 4 things to know

Many ASCs operated by Brentwood, Tenn.-based Surgery Partners are operating at less than one-fifth of typical volumes, Nashville Post reports.

Four things to know:

1. Surgery Partners, which operates 111 ASCs and 16 hospitals, said many of its facilities are open just one to two days a week. Its hospitals are operating at about 20 to 40 percent of normal levels.

2. In an update to investors, Executive Chairman Wayne DeVeydt said Surgery Partners isn't able to forecast how many suspended procedures will actually be carried out at its facilities once elective case restrictions are lifted.

3. Surgery Partners has furloughed some workers and converted some salaried staff to hourly rates, which helped it slash quarterly operating costs — which are typically $380 million — by roughly 50 percent. It closed out March with $185 million in cash and cash equivalents.

4. Majority owned by Bain Capital, Surgery Partners has had four U.S. leveraged loans in the past month. It has total leverage above 10 times and could see negative earnings this quarter despite furloughing employees, according to Bloomberg Intelligence.

 

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