Surgery Partners, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Surgery Partners, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations.</b>

AI Summary

Surgery Partners, Inc. (SGRY) filed a Annual Report (10-K) with the SEC on February 26, 2024. Surgery Partners, Inc. filed its 2023 Form 10-K on February 26, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is General Medical & Surgical Hospitals, NEC. The filing includes financial data for the fiscal years 2021, 2022, and 2023. Surgery Partners, Inc. is incorporated in Delaware and headquartered in Brentwood, TN.

Why It Matters

For investors and stakeholders tracking Surgery Partners, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Surgery Partners' financial health and operational results for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial statements and risk factors within the filing offer insights into the company's strategic direction, market position within the healthcare services sector, and potential challenges it faces.

Risk Assessment

Risk Level: medium — Surgery Partners, Inc. shows moderate risk based on this filing. The company operates in the healthcare services sector, which is subject to significant regulatory changes and reimbursement risks, as detailed in its risk factors.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Surgery Partners' performance and outlook in the evolving healthcare landscape.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-26 — Filing Date (Filed as of date)
• 8062 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Surgery Partners, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• February 26, 2024 (date) — Filing date
• Brentwood, TN (location) — Business address
• DE (location) — State of incorporation

FAQ

Risk Factors

• Regulatory Environment [high — regulatory]: The company is subject to extensive federal, state, and local government regulations related to healthcare services, which could impact operations and profitability.
• Debt Obligations [medium — financial]: The company has significant debt obligations, and its ability to service this debt is critical to its financial stability.
• Competition [medium — market]: The healthcare services market is highly competitive, and increased competition could adversely affect the company's market share and profitability.

Industry Context

Surgery Partners operates within the General Medical & Surgical Hospitals, NEC sector, providing a range of healthcare services.

Regulatory Implications

The healthcare industry is heavily regulated, with changes in reimbursement policies and compliance requirements significantly impacting providers like Surgery Partners.

What Investors Should Do

1. Analyze the company's revenue and profitability trends over the past three fiscal years (2021-2023).
2. Evaluate the specific risks outlined in the 'Risk Factors' section, particularly those related to regulatory changes and competition.
3. Assess the company's debt levels and its capacity to manage its financial obligations based on available cash flow and earnings.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-26: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year ended December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share SGRY The Nasdaq Global Select
• $2.6 billion — r "facilities") generated approximately $2.6 billion in revenue during 2023. Our Growth Str
• $90 billion — facility market represents greater than $90 billion in annual revenue, including greater th
• $55 billion — annual revenue, including greater than $55 billion of hospital outpatient department proce
• $35 billion — al outpatient department procedures and $35 billion of ambulatory surgical center procedure
• $60 billion — addition, we believe that approximately $60 billion of inpatient surgical cases have the po
• $150 billion — tal addressable market of approximately $150 billion. Operations During 2023 and 2022, we

Filing Documents

• sgry-20231231.htm (10-K) — 2107KB
• a2023exhibit211.htm (EX-21.1) — 185KB
• a2023exhibit231.htm (EX-23.1) — 3KB
• a2023exhibit311.htm (EX-31.1) — 9KB
• a2023exhibit312.htm (EX-31.2) — 9KB
• a2023exhibit321.htm (EX-32.1) — 6KB
• a2023exhibit97.htm (EX-97) — 33KB
• sgry-20231231_g1.jpg (GRAPHIC) — 44KB
• 0001638833-24-000029.txt (&nbsp;) — 11845KB
• sgry-20231231.xsd (EX-101.SCH) — 74KB
• sgry-20231231_cal.xml (EX-101.CAL) — 128KB
• sgry-20231231_def.xml (EX-101.DEF) — 368KB
• sgry-20231231_lab.xml (EX-101.LAB) — 1061KB
• sgry-20231231_pre.xml (EX-101.PRE) — 693KB
• sgry-20231231_htm.xml (XML) — 1796KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 35 Item 1C. Cybersecurity 35 Item 2.

Properties

Properties 35 Item 3.

Legal Proceedings

Legal Proceedings 35 Item 4. Mine Safety Disclosures 35 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 Item 6. [Reserved] 37 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 47 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 47 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 47 Item 9A.

Controls and Procedures

Controls and Procedures 48 Item 9B. Other Information 50 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 50 PART III Item 10. Directors, Executive Officers and Corporate Governance 51 Item 11.

Executive Compensation

Executive Compensation 51 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 51 Item 13. Certain Relationships and Related Transactions, and Director Independence 51 Item 14. Principal Accounting Fees and Services 51 PART IV Item 15. Exhibits and Financial Statement Schedules 52 Item 16. Form 10-K Summary 54

Signatures

Signatures Table of Contents Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K (this "Annual Report") contains forward-looking statements based on our current expectations, estimates and assumptions about future events. All statements other than statements of current or historical fact contained in this report, including statements regarding our future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. The words "projections," "believe," "continue," "drive," "estimate," "expect," "intend," "may," "plan," "will," "could," "would" and similar expressions are generally intended to identify forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, those described in the "Risk Factors" section of this Annual Report, which include but are not limited to the following: reductions in payments from government health care programs and private insurance payors, such as health maintenance organizations ("HMOs"), preferred provider organizations ("PPOs"), and other managed care organizations and employers; our ability to contract with private insurance payors; changes in our payor mix or surgical case mix; failure to maintain or develop relationships with physicians on beneficial or favorable terms, or at all; the impact of payor controls designed to reduce the number of surgical procedures; our efforts to integrate operations of acquired businesses and surgical facilities, attract new physician partners, or acquire additional surgical facilities; supply chain issues, including shortages or quality control issues with surgery-related products, equipment and medical supplies; competition for physicians, nur

Business

Item 1. Business Overview Surgery Partners, Inc., a Delaware corporation, acting through its subsidiaries, owns and operates a national network of surgical facilities and ancillary services. Unless the context otherwise indicates, Surgery Partners, Inc. and its subsidiaries are referred to herein as "Surgery Partners," "we," "us," "our" or the "Company." We are a leading healthcare services company with an integrated outpatient delivery model focused on providing high-quality, cost-effective solutions for surgical and related ancillary care in support of both patients and physicians. We are one of the largest and fastest growing surgical services businesses in the United States ("U.S."), with more than 180 locations in 33 states, including ambulatory surgery centers ("ASCs"), short-stay surgical hospitals ("surgical hospitals"), and multi-specialty physician practices, among others. Patient services provided in our ASCs and surgical hospitals (collectively, "surgical facilities" or "facilities") generated approximately $2.6 billion in revenue during 2023. Our Growth Strategies Our differentiated operating model employs a multifaceted strategy to grow revenue, earnings and cash flow. We believe the following are key components to this strategy: Deliver outstanding patient care and clinical outcomes; Continue to execute and expand upon our physician engagement strategy in attractive markets; Become the partner of choice for physicians seeking to become or stay independent; Become the employer of choice by attracting, engaging, retaining, developing and promoting talent; Drive organic growth at existing facilities through targeted physician recruitment, service line expansion and implementing our efficient operating model; Seek partnership opportunities with payors to make health care more affordable for their members; Continue our disciplined acquisition strategy; Offer new services to provide a more comprehensive continuum of care; and Enhance operation

View Full Filing

View this 10-K filing on SEC EDGAR