Despite $452 million in third-quarter 2019 revenues, Surgery Partners posted a net loss of $24.8 million for the quarter.
Here are four quotes from CEO and Chairman Wayne DeVeydt from the company's earnings call, as transcribed by Motley Fool:
What to expect for the rest of 2019: "As we prepare for the fourth quarter, we continue to be pleased with our year-to-date progress on a variety of fronts. Same-facility revenues continue to exceed the high end of our targeted long-term range of 4-6 percent. These results are driven by both our physician recruiting efforts as well as solid improvements in our commercial rates. More importantly, as we discussed in our previous call, there is a compounding impact on our business as new surgeons continue to ramp up in our facilities, but we are concurrently improving our commercial rates, a compounding that we expect to meaningfully impact our fourth quarter 2019 and longer-term results."
On the growth of same-facility revenues: "On a year-to-date basis, same facility revenues were up 7.6 percent, an improvement of 300 basis points over the comparable period in 2018. During this period, the contribution margin from our physicians recruited since the beginning of 2018 are already more than double their contribution from all of 2018, and we expect to see further strength in the fourth quarter consistent with typical industry trends for our sector."
On 2020 growth: "As we start to look to next year, we are confident we can continue to build on the strong foundation we constructed over the last seven quarters. Our model remains the same. We believe that our base business can grow at 2-3 percent on volume, and 2-3 percent on rate, yielding 4-6 percent same-facility revenue growth with a bias toward the higher end of the range."
On how Surgery Partners views CMS' final rule: "The continued favorable actions undertaken by CMS to benefit ASCs demonstrates what we know to be true. Our industry in general and Surgery Partners in particular is on the right side of quality and cost-effective healthcare delivery."