26
JOINT
VENTURES
Surgical Care Affiliates' Q3 Revenue Jumps to $322.8M; Total
Joint Replacement Business Doubles — 14 Things to Know
By Mary Rechtoris
D
eerfield, Ill.-based Surgical Care Affiliates report-
ed its third quarter results for the fiscal year 2016.
Here are 14 things to know:
Q3 financial results
1. The company's net operating revenue increased 25.2
percent to $322.8 million, up from the same period of FY
2015.
2. Net income attributable to SCA was $13.3 million, an 88
percent drop from $118.6 million during Q3 FY 2015.
3. SCA's net cash provided by operating activities was
$78.2 million, marginally up from $77.4 million during Q3
FY 2015.
4. SCA had a one-time, one-cash tax valuation allowance
release that totaled $106.1 million.
5. The company's adjusted EBITDA less non-controlling in-
terest increased to $47.9 million this quarter, up 13.4 per-
cent from the same period during FY 2015.
6. Compared to Q3 last year, SCA GAAP net patient rev-
enue rallied 2.4 percent.
7. SCA systemwide net operating revenues jumped 14.2
percent.
8. For FY 2016, SCA expects its adjusted EBITDA less NCI
growth to be between 13 percent and 16 percent.
Transactions
9. The company acquired six new facilities, four of which are
consolidated and two of which are nonconsolidated, dur-
ing the quarter. SCA also closed one consolidated facility
and sold one equity method facility.
10. Of SCA's existing facilities, seven converted from non-
consolidated to consolidated. The conversions did not im-
pact SCA's total facility count for the third quarter.
11. SCA had a total facility count of 205 as of Nov. 1, 2016.
Strategy
12. Compared to the first nine months of FY 2015, SCA's
total joint replacements have more than doubled. Thirty-
seven of SCA's facilities are currently performing total joint
replacements.
13. SCA continues to expand its surgical networks. The
company added its ninth facility in partnership with New
Jersey-based Virtua Health during Q3.
14. During Q3, SCA entered into two additional agree-
ments with Blue Cross plans that include value-based pay-
ments tied to quality, patient experience and cost.
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AmSurg, Envision Healthcare
Shareholders Approve Merger
— 4 Key Notes
By Mary Rechtoris
N
ashville, Tenn.-based AmSurg and Greenwood, Colo.-
based Envision Healthcare shareholders approved the
companies' merger.
Here are four key notes:
1. The shareholders approved the deal at separate meet-
ings on Dec. 1, 2016.
2. Envision and AmSurg each filed a Form 8-K with the
full voting results.
3. Holders of more than 82 percent of Envision shares
approved the merger.
4. Holders of 88 percent of AmSurg shares gave the
green light for the deal.
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transactions on a Louisiana surgery center, two physician practices and
an anesthesia practice. e company also entered into a relationship
with a Florida health system to improve their outpatient strategy.
4. Michael Doyle is the CEO of Surgery Partners. He has more than
20 years of experience in outpatient leadership roles. Before joining
Surgery Partners' team in 2004, Mr. Doyle was the senior vice presi-
dent for Birmingham, Ala.-based HealthSouth, one of the nation's
leading owners and operators of inpatient rehabilitative hospitals.
5. In October 2016, Surgery Partners named Teresa DeLuca, MD, to its
board of directors. Dr. DeLuca was a senior director of global product
development services at PRA International and a senior medical scien-
tist at GlaxoSmithKline.
6. Over the past few years, Surgery Partners has significantly ex-
panded through major acquisitions. In June 2014, Surgery Partners
acquired the Green Hills, Tenn.-based ASC company Symbion in a
$792 million transaction.
7. e company also merged with Novamed, an ASC operating compa-
ny, in 2011. rough the deal, Novamed is a wholly-owned subsidiary
of Surgery Partners.
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