Brentwood, Tenn.-based Surgery Partners reported $416.8 million in first quarter 2019 revenue while growing its same-facility revenue 5 percent.
Motley Fool transcribed the earnings call.
Note: Lightly edited for style and clarity.
Four quotes from the call:
1. Surgery Partners CEO Wayne DeVeydt on total joint growth: "The number of total joints performed in our facilities continues to accelerate. In the first quarter of 2019, we nearly doubled the number of total joints performed in our facilities as compared to the same period a year ago. This growth is a function of our partnership efforts with both health plan partners and physicians, which are mutually aligned in providing the best clinical outcome in the most cost-efficient setting for the patient."
2. Mr. DeVeydt on bringing more partners into joint ventures: "The majority of our business, roughly 96 percent, is generally two-way joint ventures, but I would tell you that I am really open-minded. In fact, the team and I ... are really looking at how we can really expand that 4 percent of three-way JVs at a much more accelerated pace in the back half of this year and going into next year."
3. Mr. DeVeydt on why three-partner joint ventures are appealing: "I think there's an opportunity for us to accelerate some value creation for our shareholders through those JVs, and I think some of these in-market transactions, we've got good market share and good leverage. We might be able to accelerate some of our rate efforts over time through those initiatives."
4. Mr. DeVeydt on Surgery Partners' strong same-facility growth: "Candidly, it's just basic blocking and tackling. It's getting the right rate increases for the value we create, it's recruiting new physicians and doing more procedures in your facilities than you did a year ago, and it's focused on the right procedures."