AmSurg's third-quarter 2014 adjusted EPS of $0.66 increased 24.5%
year over year sailing past the Zacks Consensus Estimate of $0.54.
It has also exceeded the company's guidance range. Revenues
increased a massive 91.3% but failed to meet the estimate. Apart
from strong performance of Sheridan, improved average revenues per
procedure and increase in same-center revenues were encouraging.
The Sheridan acquisition has paved AmSurg's way into the huge and
fast-growing fragmented physician outsourcing market. Nonetheless,
headwinds like reduction in workers' compensation reimbursement,
sequestration and increased interest expense are intimidating. We
are thus Neutral on AmSurg.
Headquartered in Nashville, TN, AmSurg Corporation (AMSG) is a
leading operator of single-specialty practice-based ambulatory
surgery centers (ASCs). The company develops, acquires, and
operates practice-based ASCs in partnership with physician practice
groups throughout the U.S.
At the end of Mar 2014, AmSurg operated 242 ASCs located in 35
states and the District of Columbia. Among these ASCs, the company
owned majority interest in 235 centers and owned a minority
interest in seven (three of which are consolidated).
At the end of Mar 2014, 151 centers performed gastrointestinal
endoscopy procedures, 48 performed procedures in multiple
specialties, 36 performed ophthalmology procedures and seven
centers performed orthopedic procedures.
Sources of Revenues
Revenues are derived entirely from facility fee charges, which
are largely funded by third-party reimbursement programs such as
government and private insurance. The fee varies depending on the
procedure but usually includes all charges for operating room
usage, special equipment usage, supplies, recovery room usage,
nursing staff and medication and in some cases, billing for
anesthesia services. However, it does not include consultation
charges of the surgeon, anesthesiologist or other attending
physicians for patients as these are billed directly by the
physicians themselves. In 2013, AmSurg derived approximately 25% of
revenues from governmental healthcare programs, primarily Medicare
and Medicare managed programs, and the remainder from a wide mix of
commercial payors and patient co-pays and deductibles.
AmSurg Corp. (AMSG): Read the Full Research
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