Issue link: https://beckershealthcare.uberflip.com/i/1242960
40 OUTPATIENT SURGERY Surgery Partners makes move for financial flexibility, withdraws 2020 outlook due to COVID-19: 4 details By Laura Dyrda Surgery Partners filed a form 8-K and withdrew its full year 2020 outlook, according to Market Exclusive. Four details: 1. Surgery Partners signed a credit agreement on Aug. 31, 2017, for a $120 million se- nior secured revolving credit facility, among other things. The credit agreement has been amended twice since then, most recently on March 25, 2019. 2. The company drew down its available capacity under the $120 million revolving cred- it facility, excluding $7.1 million capacity for outstanding letters of credit, on March 18. It did so as a precautionary measure designed to increase liquidity and preserve the company's financial flexibility during the coronavirus pandemic. 3. The company withdrew its full-year 2020 outlook, which projected revenue growth in the high single-digits and adjusted EBITDA growth in the double-digit percentage. 4. Many surgery centers around the country closed to stem the spread of the coronavi- rus and divert resources and supplies to hospitals on the front lines of caring for patients with COVID-19. In some areas, ASCs became excess capacity for those hospitals. n COVID-19 has 'substantially' decreased revenue for 68% of physicians By Angie Stewart Most physicians have seen a substantial decrease in revenue because of COVID-19 and stay-at-home orders, according to a recent MDLinx survey of 670 physicians. About one-third of respondents were primary care special- ists, and the rest represented other specialties such as an- esthesiology, cardiology and surgery. Nearly 60 percent of respondents were in private practice. They were asked to describe how COVID-19 has affected their practice finances. The results: 1. Decreased revenue substantially: 68 percent 2. Decreased revenue slightly: 6 percent 3. Increased revenue slightly: 1 percent 4. Increased revenue substantially: 1 percent 5. Revenue has stayed the same: 6 percent 6. Not sure how COVID-19 has affected finances: 10 percent 7. Other: 7 percent n The Joint Commission updates surgery center burden reduction rules By Rachel Popa T he Joint Commission has updated its ambu- latory care standards to match CMS policy changes. The changes include remov- ing transfer agreements with hospitals, timeline revisions for emergency preparedness plans and giving more flexibil- ity for pre-surgical physicals and history in ASCs. The new changes went into effect March 15. n Medical practice layoffs projected to reach 36% By Angie Stewart M edical group practices of all sizes and spe- cialties have taken a financial hit from the COVID-19 pandemic, according to new survey results from the Medical Group Management Associa- tion. The Medical Group Management Association surveyed 724 medical practices April 7-8. About 75 percent of respondents were part of independent medical groups with fewer than 50 full-time equivalent physicians. Three takeaways: 1. COVID-19 has had a negative financial effect on 97 percent of practices, whether indirectly or directly. 2. Practices reported an average decrease in revenue of 55 percent. Patient volumes have dropped 60 percent on average since the crisis began. 3. As of April 8, 22 percent of respondents had laid off employees and 48 percent had furloughed workers. Those numbers are projected to reach 36 percent and 60 percent, respectively, within a month. n