Surgery Partners Inc
NASDAQ:SGRY
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Surgery Partners Inc
NASDAQ:SGRY
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US |
Surgery Partners Inc
Surgery Partners owns and operates outpatient surgery centers and short-stay surgical hospitals, mostly for procedures that do not need a full hospital admission. It also runs related services such as anesthesia and physician support at many of these locations. The company helps doctors perform scheduled procedures in lower-cost settings that are built for speed, convenience, and specialized care. Its main customers are patients, surgeons, and the health plans or government programs that pay for the procedures. Surgery Partners makes money by billing for the surgeries, facility use, and related clinical services delivered at its centers and hospitals. In many cases, it works closely with physician partners who help run the facilities and send patients there. What makes the business model distinctive is its role in moving care away from expensive inpatient hospitals and into outpatient centers. That gives Surgery Partners a clear place in the healthcare system: it is not a drug maker or a general hospital chain, but a focused operator of procedure-based sites where common surgeries are done more efficiently and with more physician involvement.
Surgery Partners owns and operates outpatient surgery centers and short-stay surgical hospitals, mostly for procedures that do not need a full hospital admission. It also runs related services such as anesthesia and physician support at many of these locations. The company helps doctors perform scheduled procedures in lower-cost settings that are built for speed, convenience, and specialized care.
Its main customers are patients, surgeons, and the health plans or government programs that pay for the procedures. Surgery Partners makes money by billing for the surgeries, facility use, and related clinical services delivered at its centers and hospitals. In many cases, it works closely with physician partners who help run the facilities and send patients there.
What makes the business model distinctive is its role in moving care away from expensive inpatient hospitals and into outpatient centers. That gives Surgery Partners a clear place in the healthcare system: it is not a drug maker or a general hospital chain, but a focused operator of procedure-based sites where common surgeries are done more efficiently and with more physician involvement.
Results: Surgery Partners said first-quarter performance was broadly in line with internal expectations, with about $811 million of net revenue, $102 million of adjusted EBITDA and 4.4% same-facility revenue growth.
Growth: Same-facility case growth was only 0.6% because of weather-related deferrals in lower-acuity markets, but management said higher-acuity areas held up well and total joints in ASCs rose 14.6% year over year.
Margins: Adjusted EBITDA margin was 12.6%, with labor and supply costs improving year over year, partly offset by incentive compensation reset, higher provider taxes and tariff pressure.
Outlook: Management reiterated full-year 2026 guidance of $3.35 billion to $3.45 billion of revenue and at least $530 million of adjusted EBITDA, and said the second-quarter guide was deliberately prudent.
Capital: The company deployed about $4 million on acquisitions in the quarter, kept its $200 million annual M&A target, and continued work on portfolio optimization, including one larger surgical hospital asset targeted for announcement around mid-2026.
