Specialist
Former VP at Surgery Partners Inc
Agenda
- Key ambulatory surgery trends relating to Surgery Partners (NASDAQ: SGRY)
- Competitive positioning vs main market players
- Impact of coronavirus pandemic on elective procedures and overall volumes
- Financial impact for FY2020 5. 2020 outlook, focusing on credit performance
Questions
1.
What key trends and themes have you been following in the ambulatory surgery sector?
2.
What percentage of elective procedures revenues are likely to be delayed vs completely lost for Surgery Partners?
3.
How do you anticipate Surgery Partners will accommodate the extra volume of elective demand following the crisis? What was the available capacity prior to the pandemic and what will it be in the future? Is this pipeline being built out? What might the ramp-up period be like?
4.
Which procedures and regions may come back the quickest? What factors should we consider here and how does geographic differentiation impact things?
5.
How do you think Surgery Partners is managing its costs and lost revenues shorter term?
6.
To what extent is Surgery Partners itself employing physicians on payroll vs being part of a physician group that owns the ASC [ambulatory surgery centre] in a JV with the company? Does that go towards variable cost management where physicians’ salaries may not actually be on Surgery Partners’ books?
7.
How are physician owners responding to declines in distributions from facilities? Would you anticipate Surgery Partners’ management has communicated that distributions will be reduced?
8.
How do you expect throughput in surgery centres to be impacted by potential increased safety protocols post-coronavirus?
9.
What will be the impact on normalised capacity longer term? How is this different at surgical hospitals vs ASCs?
10.
What might be the ramp-up period to return to historical volumes?
11.
Do you expect a more significant impact on surgery volumes than in the 2008-09 recession?
12.
Do you think physicians will look to work overtime and weekends to mitigate some of the lost income they are currently experiencing?
13.
Would you anticipate any early retirements or an acceleration of doctors leaving? How would this impact Surgery Partners and the broader market?
14.
What is your outlook on physician recruiting into the ambulatory setting, weighing hospital compensation packages, cost strains and the ASC value proposition in this environment? Do you think physicians are leaning away from the ASC market because of these factors?
15.
What is the TAM opportunity from Medicare total joint replacement and cardiac procedures being done in an ASC? Is this a truly new opportunity set for Surgery Partners given its mix of surgical hospitals? Do you think it could fuel growth?
16.
How might coronavirus impact M&A in this market? Could some targets now be valued at lower multiples?
17.
Do you think coronavirus can help some procedures move out of the hospital setting longer term? How will this impact ASC and surgical hospital volumes?
18.
What do you think of Surgery Partners’ competitive positioning vs companies such as USPI [United Surgical Partners International] or SCA [Surgical Care Affiliates]?
19.
What is your 12-18-month outlook for Surgery Partners? What key factors should we monitor over that time frame?
20.
Do you think there is a natural strategic buyer for Surgery Partners?
