5 key things to know about AmSurg

Nashville, Tenn.-based AmSurg, Envision Healthcare's ambulatory services business, is a key player in the North American ASC market. 

Five things to know:

1. Among five major ASC development companies, AmSurg owns the second-highest number of surgery centers. With 261, AmSurg is second to Addison, Texas-based United Surgical Partners International, a Dallas-based Tenet Healthcare affiliate.

2. KKR acquired Envision for $9.9 billion in October 2018, creating uncertainty for AmSurg. Analyst Jonathan Kanarek published a Moody's report estimating Nashville-based Envision could sell AmSurg for around $3 billion to buyers such as Tenet or Nashville-based HCA Healthcare, if interested. However, if Envision keeps AmSurg, it could leverage the division's ASC portfolio to attract new business opportunities, Mr. Kanarek predicted. 

3. AmSurg posted $328 million in net revenue for the second quarter of 2018, a 3 percent increase over the same period in 2017. AmSurg's same-center revenue growth was 2.9 percent, including a volume growth of 1.5 percent and rate growth of 1.4 percent. The division's adjusted EBITDA for the second quarter was $64.3 million, a 6.1 percent increase over the previous year. The adjusted EBITDA margin was 19.6 percent, which was a 60-basis point improvement from the previous year. KKR took Envision and AmSurg private after it completed the buyout.

4. In June 2018, Becker's Publisher Scott Becker commended Envision Director, President and CEO Chris Holden for transforming AmSurg into a physician services company. AmSurg relied on ASC earnings for its revenue three to four years ago, but it "now generates its revenues from almost everything but ASCs," Mr. Becker noted.

5. AmSurg entered into a strategic partnership with Phoenix-based Horizon Eye Specialists & LASIK Center in May 2018. This was the first time AmSurg entered into such an agreement with a practice. As a result, AmSurg and Horizon Eye Specialists will share equity and resources.

More articles on turnarounds:
How a Michigan-based ASC aims to succeed amid high deductibles, payer consolidation
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10 top-read 'Becker's ASC Review' stories of 2018

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