Surgery Partners, Inc. Reaffirms 2023 Full Year Guidance and Provides 2024 Initial Adjusted EBITDA Outlook
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Insights
Assessing the financial health and growth trajectory of Surgery Partners, Inc. is critical for stakeholders. The reaffirmation of the 2023 Adjusted EBITDA guidance suggests a stable financial performance, aligning with prior expectations. This stability is a positive sign for investors, indicating management's confidence in the company's operational efficiency and cost management strategies.
The projection of an increased Adjusted EBITDA for 2024 exceeding $495 million reflects an ambitious growth strategy, aiming for mid-teens growth. This is significant as it may represent an acceleration in profitability, which could be a result of expanding surgical facilities, optimizing existing operations, or entering new markets. However, investors should consider the scalability of the business model and the potential increase in capital expenditures that may accompany such growth.
From a market perspective, Surgery Partners, Inc.'s focus on short-stay surgical facilities is positioned within a growing segment of the healthcare industry. The shift towards outpatient surgeries, driven by cost savings, technological advancements and payer preferences, may benefit the company. The projected revenue guidance of approximately $2.75 billion for 2023 suggests that Surgery Partners is maintaining its market share and possibly expanding its footprint.
Looking ahead, the company's emphasis on driving mid-teens growth could be indicative of strategic initiatives like mergers and acquisitions, partnerships, or service diversification. It's important to monitor how these strategies will unfold in the competitive landscape and how they will affect the company's market positioning.
The reaffirmation of Surgery Partners' financial guidance can be seen as an indicator of operational resilience in the face of ongoing healthcare industry challenges, such as regulatory changes and insurance reimbursement fluctuations. The projected increase in Adjusted EBITDA for the following year could be reflective of successful cost containment measures and an efficient response to the dynamic healthcare environment.
It is also worth noting that the company's performance must be contextualized within the broader industry trends. For instance, the increasing patient preference for minimally invasive procedures could be a tailwind for the company's growth. However, potential regulatory risks and changes in healthcare policy remain factors that could impact future financial performance.
BRENTWOOD, Tenn., Jan. 08, 2024 (GLOBE NEWSWIRE) -- Members of management of Surgery Partners, Inc. (NASDAQ:SGRY) ("Surgery Partners" or the "Company"), a leading short-stay surgical facility owner and operator, will be meeting with investors today, January 8, 2024, as part of the 42nd Annual J.P. Morgan Healthcare Conference, including a presentation at 5:15 p.m. ET. Based on results through November 2023, the Company is re-affirming its 2023 Adjusted EBITDA guidance of
Interested investors and other parties may listen to a simultaneous webcast of the event by logging onto the Investor Relations section of the company's website at www.surgerypartners.com. The replay will also be available on this same website for a limited time following the call.
About Surgery Partners
Headquartered in Brentwood, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high-quality, cost-effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 180 locations in 32 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices and urgent care facilities. For additional information, visit www.surgerypartners.com.
Forward-Looking Statements
This press release contains forward-looking statements, including those regarding growth and our anticipated operating results for future periods and other similar statements. These statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," "may," "could," and similar expressions. All forward-looking statements are based on current expectations and beliefs as of the date of this release and are subject to risks, uncertainties and other factors that may cause actual results to differ materially from the expectations discussed in, or implied by, the forward-looking statements. Many of these factors are beyond our ability to control or predict including, without limitation, reductions in payments from government health care programs and private insurance payors, such as health maintenance organizations, preferred provider organizations, and other managed care organizations and employers; our ability to contract with private insurance payors; changes in our payor mix or surgical case mix; failure to maintain or develop relationships with physicians on beneficial or favorable terms, or at all; the impact of payor controls partners, or acquire additional surgical facilities; supply chain issues, including shortages or quality control issues with surgery-related products, equipment and medical supplies; competition for physicians, nurses, strategic relationships, acquisitions and managed care contracts; our ability to attract and retain qualified health care professionals; our ability to enforce non-compete restrictions against our physicians; our ability to manage material liabilities whether known or unknown incurred as a result of acquiring surgical facilities; the impact of future legislation and other health care regulatory reform actions, and the effect of that legislation and other regulatory actions on our business; our ability to comply with current health care laws and regulations; the outcome of legal and regulatory proceedings that have been or may be brought against us; the impact of cybersecurity attacks or intrusions, changes in the regulatory, economic and other conditions of the states where our surgical facilities are located; our indebtedness; the social and economic impact of a pandemic, epidemic or outbreak of a contagious disease, such as COVID-19, on our business; and the risks and uncertainties identified and discussed from time to time in the Company’s reports filed with the SEC, including in Item 1A under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Except as required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this report, or to reflect the occurrence of unanticipated events or circumstances.
In addition, the guidance for the fiscal year ended December 31, 2023 is based on results of the Company through November 2023 and is subject to quarter- and year-end adjustments in connection with the completion of customary financial closing procedures, including management’s review and finalization of the results for the full year 2023 and to audit procedures by the Company’s independent registered public accounting firm, which have not yet been performed. These customary closing procedures, along with December results, could cause actual results to differ materially from management’s guidance. You are cautioned not to rely on management’s guidance being achieved when making an investment decision in the Company’s securities.
Contact:
Surgery Partners Investor Relations
(615) 234-8940
IR@surgerypartners.com
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