Becker's ASC Review

21 JOINT VENTURES OptumCare aims to serve 75 markets across the US: 5 key points on the future By Laura Dyrda O ptumCare, including Surgical Care Affiliates, plans to grow toward more consumer-centric care and risk-based contracting in the future, said OptumHealth's CEO Andrew Hayek during the first quarter conference call. Here are five key trends from the call, as transcribed by Seeking Alpha: 1. OptumCare aims to cover 75 markets in the U.S. with a more consumer-centric care model. "As you know, we're positioned to be the leading high-value medical group and ambulatory care organization in the country with the ambition to serve 75 markets," said Mr. Hayek. "And we're enabling this transi- tion to value-oriented and more consumer- centric care." 2. e company aims to use Optum's capabilities to promote evidence-based medicine and improve the consumer expe- rience. "[Net Promoter Scores] approach 80. In our MedExpress and SCA sites, they're av- eraging a similar range, so very, very strong consumer experience," said Mr. Hayek. 3. Partnerships are on the horizon. "With OptumCare, we're partnering with medical groups who really embrace the transition to value. at's why they choose to partner with us," said Mr. Hayek. "And many of them are starting in traditional fee-for-service markets with that kind of current fee construct and they want to migrate toward value-oriented care." 4. ere is progress toward risk-based contracting and value-based care shi. e company works with multiple payers across the country to shi fee-for-service to value- based care. "And then we also tend to focus on how we get into deep risk, especially in the senior area where we can be a very col- laborative partner with Medicare Advantage plans and drive great value," said Mr. Hayek. "e transition really depends on the start- ing point, but it inevitably involves a few years, sometimes longer." 5. ere is a tie between high quality and low cost. "We see outstanding quality in terms of stars and HEDIS," said Mr. Hayek. "We see outstanding Net Promoter Scores and then we see lower medical cost trends. And those results accelerate the further we get into risk." n Surgery Partners increased revenues 45.8% in Q1 — 8 insights By Eric Oliver S urgery Partners reported its first quarter 2018 financial results, reporting $417.4 million in revenue. Here's what you should know: 1. Reported revenues increased 45.8 percent year over year for the quarter. 2. Surgery Partners increased its surgical cases 14.7 per- cent to 124,858 this quarter. 3. Surgery Partners' quarterly net losses were $25.3 million. 4. The company's EBITDA increased 17.4 percent year over year to $47.1 million for the quarter. 5. Surgery Partners announced a diluted net loss of $0.53 per share. 6. Same-facility revenues decreased 0.5 percent year over year while revenue per case increased 3.8 percent, same- facility cases decreased 4.1 percent for the quarter. 7. Surgery Partners is maintaining its full-year 2018 guid- ance. The company expects revenues of $1.75 billion for the year and an adjusted EBITDA of $240 million. 8. The company expects to acquire between $80 million and $100 million in properties. Surgery Partners CEO Wayne DeVeydt said, "I am pleased to report a solid first quarter highlighted by strong year-over-year revenue and surgical case growth. During the quarter, we made excellent progress in strengthening our management team with several key hires and prioritized efforts to better align our organiza- tional structure and improve our operational efficiency, which has begun to create a culture of discipline, focus, and accountability across the company. We remain focused on executing on our growth strategies as we assess our assets and opportunities with an eye towards improved performance." Mr. DeVeydt said the company is focused on growing its physician recruitment, revenue cycle management and procurement initiatives in 2018. He added, "I am encour- aged by the strength of our business and believe we have the right team in place to capitalize on the significant opportunities in front of us and create value for all our stakeholders." n "We're positioned to be the leading high-value medical group and ambulatory care organization in the country." -Andrew Hayek, OptumHealth CEO

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