Issue link: https://beckershealthcare.uberflip.com/i/1252329
10 ASC MANAGEMENT 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 senior 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 credit 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 corona- virus pandemic. 3. The company withdrew its full-year 2020 outlook, which pro- jected revenue growth in the high single-digits and adjusted EBITDA growth in the double-digit percentage. 4. As of April 7, Surgery Partners reported it has received around $45 million in funding from the CARES Act in direct grant payments as well as $120 million in accelerated pay- ments from the Medicare Accelerated and Advanced Payment Program. n Texas surgical group sues insurer for COVID-19 business losses — 5 details By Angie Stewart A surgical group with two Texas locations is su- ing Sentinel Insurance Co. for business losses related to COVID-19. Five things to know: 1. My Houston Surgeons filed a lawsuit against Sentinel Insurance, which is doing business as The Hartford and Alliant Insurance Services Houston. 2. The insurer allegedly questioned or denied that My Houston Surgeons has coverage for business losses related to mandatory COVID-19 closures. 3. My Houston Surgeons — a cosmetic and recon- structive surgery group — became unable to perform any procedures March 22, when Republican Texas Gov. Greg Abbott issued an order barring elective procedures during the COVID-19 crisis. 4. My Houston Surgeons is seeking a declaratory judgment that Sentinel Insurance is contractually obligated to cover losses that the practice incurs while closed. 5. Details of the case were outlined in a press release from The Ammons Law Firm, which is representing My Houston Surgeons. n Hospitals forfeit major revenue stream by delaying elective surgeries — 5 things to know By Angie Stewart C MS, the Ambulatory Surgery Center Association and the American College of Surgeons were among the many organizations asking hospitals to minimize, postpone or cancel elective procedures until the COVID-19 outbreak is under control. e Motley Fool explained what this guid- ance could mean for hospitals and hospital operators: 1. Hospital operators will likely continue see- ing stocks decline as unexpected costs mount and elective procedures are delayed due to the novel coronavirus. Nashville, Tenn.- based HCA Healthcare has already posted a decline of about 43 percent this year. 2. Elective surgeries make up a substantial portion of hospital revenue, bringing in about $700 more per admission than emer- gency room admissions, according to Kaiser Health News. 3. In 2011, surgical stays accounted for roughly 48 percent of hospitalization costs, the Agency for Healthcare Research and Quality reported. 4. Cardiovascular surgeons are the top revenue-generators for hospitals, according to a Merritt Hawkins survey. Orthopedic surgeons rank No. 4 in terms of revenue generation, bringing in about $3.3 million annually. 5. e American Hospital Association and other organizations have expressed concerns over recommendations to delay elective sur- gery. In a March 15 letter to the U.S. surgeon general, they outlined the need to prioritize seriously ill patients: "We agree that the crisis as it develops may require the curtailment of the least critical or time-sensitive hospital services, but any cur- tailment must be nuanced to meet the needs of all severely ill patients. Our patients will be best served by carefully evaluating and prioritizing gradients of 'elective' care to en- sure that the most time-sensitive medically necessary care can be delivered by physicians and hospitals." n