Becker's ASC Review

30 TRANSACTIONS Amazon's $3B Q3 loss: What ASCs need to know By Patsy Newitt Amazon reported a $3 billion net loss through the first nine months of 2022 ending Sept. 30 Here's what ASCs need to know: For the third quarter, Amazon reported $2.9 billion net income, down $3.2 billion year over year. Amazon reported net sales increased 15 percent for the quarter to $127.1 billion, with North American sales jumping 20 percent year over year to $78.8 billion. e loss was reported aer Amazon announced plans to acquire virtual and in-person primary care company One Medical for $3.9 billion. e plan to acquire primary care provider company One Medical could raise costs for all medical groups, Forbes reported. With the Amazon deal, One Medical will have the financial backing to access the primary care market and compete with the hospitals and health systems that are buying up physician practices. n USPI vs. Surgery Partners vs. SCA Health in Q3: 9 financial notes By Riz Hatton D allas-based United Surgical Partners International, Brentwood, Tenn.-based Surgery Partners and Optum, parent company of ASC chain SCA Health, all reported revenue gains in the third financial quarter. Here are nine notes from the companies' third quarter financial reports: USPI: 1. USPI reported net operating revenue at $806 million for the quarter, up 21 percent over the same period the year prior. 2. Same-facility ASC volume was up 3 percent in the third quarter. 3. USPI ended the quarter with 440 ASCs and 24 surgical hospitals across 35 states. Optum: 1. Optum's total revenues in the first nine months of 2022 are $134.9 billion, an increase of 17.8 percent year over year. 2. Optum's third-quarter operating earnings hit $3.6 billion, up from $3.1 billion from the same quarter the year prior. 3. Optum's third-quarter operating margin hit 7.9 percent, up from 7.7 percent from the same quarter the year prior. Surgery Partners: 1. Surgery Partners raked in $620.6 million during the third quarter — 11 percent growth compared to the same period the year prior. 2. In the third quarter and through October, Surgery Partners deployed more than $240 million on accretive acquisitions. 3. More than 150 physicians were hired at Surgery Partners facilities, and two ASCs were added. n The most interesting physician group deals in 2022 By Patsy Newitt Here are the eight most interesting physician group deals in 2022: 1. In February, Physician Partners, a primary care physician group and managed service organization with more than 545 physician members, got a $500 million investment. 2. In March, Optum also acquired home healthcare business LHC Group for around $5.4 billion. Lafayette, La.-based LHC Group offers in-home health and hospice care from 964 locations in 37 states. 3. In April, Optum's acquisition of Newton, Mass.- based Atrius Health, which employs 645 physicians and primary care providers, for $236 million was confirmed. 4. In May, St. Louis-based SSM Health acquired the SLUCare Physician Group, creating a group of more than 1,200 physicians. SLUCare's more than 600 physicians became an academic physician division within SSM Health. 5. In June, Optum acquired Healthcare Associates of Texas from Webster Equity Partners for $300 million. 6. In July, Amazon said it would acquire virtual and in- person primary care company One Medical in a cash deal valued at $3.9 billion. The deal will combine One Medical's technology and team with Amazon to offer more convenient and affordable healthcare in- person and virtually. 7. In August, Optum acquired Houston-based Kelsey- Seybold for around $2 billion. Kelsey-Seybold is a multispecialty physician group with cancer and women's health centers, two ASCs and a sleep center. 8. In September, DuPage Medical Group in Downers Grove, Ill., made a strategic investment in a Quincy, Ill.-based physician group to expand a partnership between the two organizations. n

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