AmSurg reported net revenue growth in the third quarter of 2015.
"AmSurg continued to perform meaningfully better than we expected during the third quarter of 2015, resulting in our raising our financial guidance for the third consecutive quarter," said President and CEO Christopher A. Holden. "Our strong results reflected outstanding organic growth for the quarter, with an acceleration in our Ambulatory Services same-center revenue for the third consecutive quarter and double-digit growth in Physician Services same-contract revenue growth for the second consecutive quarter."
Here are 10 key notes from the financial report:
1. AmSurg reported 29 percent net revenue growth to $650.2 million in the third quarter. Ambulatory Services net revenue growth was up 12 percent to $309 million. Physician Services net revenue was $341.2 million.
2. Ambulatory Services produced 6.6 percent same-center revenue growth primarily due to improved reimbursement, increased volume and improved case mix. There was a 2.7 increase in procedures and 3.9 percent increase in net revenue per procedure.
3. Physician Services reported 10.1 percent same contract revenue growth, driven by increased volume, improved reimbursement and higher acuity. Same-contract growth was 7.6 percent of the total revenue growth; 2.9 percent was from net new contract revenues; and 15.4 percent was from acquisition revenues.
4. The company's Ambulatory Services purchased two ambulatory surgery centers during the quarter and opened one de novo ASC. The division entered into a joint venture with a California health system that contributed two ASCs and a surgical hospital. The division acquired two ASCs. Physician Services purchased two anesthesia practices in the third quarter."
5. By the quarter's end, AmSurg's Ambulatory Services operated 253 ASCs and one surgical hospital, with five additional ASCs under the letter of intent and one center under development, expected to open next year.
6. AmSurg's Physician Services reported a 5 percent increase in patient encounters and a 5.1 percent increase in net revenue per patient encounter.
7. AmSurg reported $187.4 million cash and cash equivalents for the quarter. Net cash flows from operations, less distributions to non-controlling interests, were $118.7 million in the third quarter.
8. The company increased revenue guidance for the full year to $2.52 billion to $2.54 billion.
9. Same-center revenue is expected to increase 4 percent to 5 percent for Ambulatory Services. Same-contract revenue growth was affirmed at 8 percent to 10 percent for Physician Services for the full year.
10. AmSurg expects adjusted EBITDA at $486 million to $490 million, up from previous guidance of $474 million to $480 million.