Core Viewpoint - Surgery Partners (SGRY) faced a significant decline in stock value following disappointing Q4 2025 results and a downgraded FY 2026 outlook, raising questions about the accuracy of prior guidance regarding margin expansion and growth expectations [1][3]. Group 1: Financial Performance and Guidance - CEO Eric Evans previously expressed "high confidence" in the company's growth outlook and anticipated "significant visibility" into expected rate growth for 2025 [2]. - CFO Dave Doherty projected a minimum of $200 million in M&A capital deployment and indicated comfort with the company's cash-flow generation and growth trajectory [2]. - The FY 2026 guidance downgrade highlighted that factors such as payer-mix shifts, anesthesia-cost dynamics, and lower-than-expected case growth were already impacting margins at the time of earlier optimistic statements [3]. Group 2: Acquisition and Capital Deployment - Surgery Partners aimed for at least $200 million in acquisitions but only managed to deploy $182 million in capital towards acquisitions in 2025 [3]. - The company had plans for the development of at least 10 new ambulatory surgery centers annually, projecting meaningful long-term organic growth starting two years post-opening of each facility [2].

Core Viewpoint - Surgery Partners, Inc. has appointed Lloyd Dean as an independent director on its Board of Directors, bringing extensive experience in healthcare leadership and public policy [1][5]. Company Overview - Surgery Partners is a leading healthcare services company headquartered in Brentwood, Tennessee, focusing on high-quality, cost-effective surgical and ancillary care solutions [6]. - The company operates over 200 locations across 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices, and urgent care facilities [6]. Leadership Experience - Lloyd Dean is the former CEO of CommonSpirit Health, which is one of the largest nonprofit health systems in the U.S., comprising 142 hospitals and over 1,000 care sites [2]. - He has a history of improving clinical quality and operational performance, as well as advancing community health initiatives [2]. - Dean has also served as President and CEO of Dignity Health, where he enhanced patient experience and expanded partnerships [2]. Advocacy and Public Service - Dean is recognized for his efforts to reduce health disparities and improve equitable access to healthcare [3]. - He has advised multiple Presidential Administrations on significant healthcare issues, including the Affordable Care Act and COVID-19 vaccination efforts [3]. Board Memberships and Education - In addition to his role at Surgery Partners, Dean serves on the boards of several organizations, including McDonald's Corporation, where he chairs the Human Resources & Compensation Committee [4]. - He holds a B.S. in sociology and a master's degree in educational leadership, along with multiple honorary doctorates [4]. Strategic Vision - The Chairman of Surgery Partners' Board expressed confidence that Dean's insights will be invaluable as the company expands its surgical care services [5]. - Dean himself expressed enthusiasm about joining the Board during a period of growth and opportunity for Surgery Partners, emphasizing the company's position in leading the shift toward high-value outpatient surgical care [5].

Core Insights - Surgery Partners, Inc. has appointed Lloyd Dean as an independent director on its Board of Directors, bringing extensive experience in healthcare leadership and public policy [1][5]. Company Overview - Surgery Partners is a leading healthcare services company headquartered in Brentwood, Tennessee, focusing on high-quality, cost-effective surgical and ancillary care solutions [6]. - The company operates more than 200 locations across 30 states, including ambulatory surgery centers, surgical hospitals, multi-specialty physician practices, and urgent care facilities [6]. Leadership Background - Lloyd Dean previously served as the CEO of CommonSpirit Health, which is one of the largest nonprofit health systems in the U.S., comprising 142 hospitals and over 1,000 care sites [2]. - He has a strong track record in improving clinical quality, operational performance, and community health initiatives [2]. - Dean has also held leadership roles at Dignity Health, where he focused on enhancing patient experience and expanding partnerships [2]. Contributions to Healthcare - Dean is recognized for his efforts to reduce health disparities and improve equitable access to healthcare [3]. - He has advised multiple Presidential Administrations on significant healthcare issues, including the Affordable Care Act and COVID-19 vaccination efforts [3]. Board and Advisory Roles - In addition to his role at Surgery Partners, Dean serves on the boards of several organizations, including McDonald's Corporation, where he chairs the Human Resources & Compensation Committee [4]. - He is also a Senior Advisor to Bain Capital and has held various federal and state appointments related to public health and workforce planning [4]. Strategic Vision - The Chairman of Surgery Partners' Board expressed confidence in Dean's ability to provide valuable insights as the company aims to expand its high-quality surgical care offerings [5]. - Dean himself expressed enthusiasm about joining the board during a period of growth and opportunity for Surgery Partners, emphasizing the company's position in leading the shift towards high-value outpatient surgical care [5].

Core Insights - The company has faced challenges in maintaining its market access point for Medicare Advantage (MA) contracts, leading to a need for improved coordination with physician partners and primary care bases [1][2] - The company has consistently earned and taken commercial market share, indicating a strong competitive position despite recent challenges [3] - There has been a notable growth in high-acuity procedures by 18%, which is a positive indicator for the company's performance in a leading market share position for orthopedics [4] Summary by Categories Market Access and Coordination - The company has recognized the need to enhance coordination with independent surgical facilities and primary care providers, as they are not directly employed by the company [2] - There is an acknowledgment that the company did not react quickly enough to changes in the market dynamics regarding MA access [1] Market Performance - The company has a strong expectation of recovering its market position over time, particularly in areas where it has historically taken commercial market share [3] - Despite the challenges, the company has maintained a competitive edge with its value product offerings [3] High-Acuity Procedures - The company reported an 18% growth in high-acuity procedures, which is a significant achievement in the current market context [4] - This growth reflects the company's strong position in the orthopedic market, despite the overall market challenges [4]

Summary of Surgery Partners FY Conference Call (March 10, 2026) Company Overview - **Company**: Surgery Partners (NasdaqGS:SGRY) - **Industry**: Healthcare, specifically focused on surgical facilities and outpatient care Key Points and Arguments Market Dynamics - The company operates as an independent surgical facility amidst large integrated nonprofit systems that are moving away from Medicare Advantage (MA) contracts, impacting patient access and revenue [1] - There is a noted growth of 18% in high acuity procedures, but this growth was primarily driven by Medicare patients, leading to lower net revenue despite increased case volume [2][3] - The company is experiencing pressure from the Affordable Care Act (ACA) exchange patients, which affects their commercial patient mix and overall revenue [3][9] Financial Performance - Total case volumes fell below expectations due to payer mix issues, yet the company exceeded the high end of revenue guidance, indicating strong performance in high acuity cases [8] - The company is actively working on cost reduction and efficiency improvements to address margin compression faced by physicians [5][10] Strategic Initiatives - The company is focused on optimizing its portfolio by potentially divesting from larger facilities that have higher debt loads and lower free cash flow conversion [24][25] - A share repurchase program of $200 million has been authorized, indicating confidence in future cash flows from portfolio optimization efforts [26][28] Guidance and Future Outlook - The company has adopted a conservative approach to guidance for 2026, excluding unannounced M&A, while maintaining a target of at least $200 million for capital deployment [12][15] - There is an expectation that some market pressures will take time to resolve, particularly regarding MA and commercial access [9][11] Policy and Regulatory Environment - The company supports site neutrality in healthcare payments, believing that their facilities can provide care at a lower cost compared to traditional acute care settings [30][31] - The expiration of enhanced ACA subsidies has had a localized impact on patient volumes, particularly in one market where exchange patients were significant [33][36] Cost Structure and Anesthesia Challenges - The relationship between labor costs, anesthesia costs, and shifts in government payer mix is complex, with anesthesiologists facing reimbursement challenges that affect coverage and costs for the company [38][40] - The company is exploring ways to manage anesthesia costs more effectively, given the significant disparity in reimbursement rates between Medicare and commercial payers [39][40] Additional Important Insights - The company emphasizes the importance of physician partnerships and the need for better coordination to capture commercial patients effectively [7] - There is a strong focus on maintaining high patient experience and outcomes, which are critical for attracting and retaining physician partners [6][10] - The company believes that even in a potential economic slowdown, their value proposition as a lower-cost provider positions them well in the market [18][20]

Core Viewpoint - Ortelius Advisors expresses significant concern over Surgery Partners, Inc.'s performance, highlighting a 67% decline in stock price over the past five years and a lag of 108 percentage points behind benchmarks, while suggesting multiple strategies to unlock intrinsic value for stockholders [1] Summary by Relevant Sections Company Performance - Surgery Partners, Inc. has seen a 67% decline in stock price over the past five years, significantly underperforming compared to industry benchmarks [1] - The company's stockholder returns have lagged behind peers such as HCA Healthcare and Tenet Healthcare by 276 and 413 percentage points, respectively, during the same period [1] Strategic Recommendations - Ortelius proposes several strategies to enhance stockholder value, including: - Reviewing strategic alternatives - Installing a new management team - Refreshing the Board of Directors - Reducing debt - Repurchasing shares - Monetizing all surgical hospitals [1] Financial Implications - A divestiture of all surgical hospitals could generate billions in asset sales, providing funds for stock buybacks, debt reduction, and improving creditworthiness [1] - The remaining entity, focused on ambulatory surgery centers, is expected to show stronger revenue growth, higher EBITDA margins, and larger free cash flow yields, potentially leading to a higher EV/EBITDA multiple [1] Governance Concerns - Ortelius criticizes the current Board of Directors and management for their role in the destruction of stockholder value, calling for accountability and substantial changes in leadership [1]

New York, New York--(Newsfile Corp. - March 9, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into Surgery Partners, Inc. ("Surgery Partners, Inc.") (NASDAQ: SGRY) concerning potential violations of the federal securities laws.On March 3, 2025, CEO Eric Evans told investors on the Q4 2024 earnings call: "We expect margin expansion in 2025 and beyond." On the same call, he stated the Company had "high confidence in and significant visibility to our expected 2025 rate grow ...

Core Viewpoint - Surgery Partners, Inc. is scheduled to present at the Barclays 28th Annual Global Healthcare Conference on March 10, 2026, at 2:30 p.m. Eastern Time [1] Company Overview - Surgery Partners is headquartered in Brentwood, Tennessee, and is a leading healthcare services company focused on high-quality, cost-effective surgical and ancillary care solutions [4] - The company was founded in 2004 and has grown to become one of the largest surgical services businesses in the United States, operating over 200 locations across 30 states, including ambulatory surgery centers and surgical hospitals [4]

Core Viewpoint - Surgery Partners, Inc. (NASDAQ: SGRY) is facing an ongoing investigation regarding potential claims on behalf of its investors, despite maintaining a "Buy" rating from Jefferies. The company reported strong revenue figures but experienced a decline in profitability, leading to a drop in stock price [2][3][6]. Financial Performance - SGRY reported a full-year 2025 revenue of approximately $3.3 billion and an Adjusted EBITDA of $526.2 million, exceeding revenue expectations but falling short on profitability [3][6]. - Following the Q4 2025 results, SGRY's stock price declined by 14.1%, prompting investor concerns and the initiation of an investigation [3][6]. Market Position - The company has been expanding its surgical facilities, which has resulted in increased revenue per case. However, asset sales have led to a decrease in total case volume, impacting short-term results [4]. - Despite mixed profitability, SGRY trades at attractive EV/EBITDA and operating cash flow multiples compared to its peers, supporting Jefferies' soft "buy" upgrade [4][6]. Stock Performance - Currently, SGRY's stock is priced at $14.28, reflecting a 2.59% increase or $0.36, with a market capitalization of approximately $1.85 billion [5]. - Over the past year, SGRY's stock has seen a high of $24.64 and a low of $12.25, with a trading volume of around 1.74 million shares [5].

Core Insights - Ziegler served as the exclusive financial advisor to Preferred Vascular Group (PVG) in its acquisition by Surgery Partners, a leading operator of surgical facilities and ancillary services [1] - PVG specializes in dialysis access procedures and operates eight Ambulatory Surgical Centers (ASCs) in Georgia and Ohio, providing cost-efficient outpatient options for dialysis care [1] - The acquisition allows Surgery Partners to enter the $6 billion dialysis access market, which sees over two million procedures annually [1] Company Overview - Preferred Vascular Group was founded in 2005 by Don Holton to address gaps in dialysis access care, focusing on high-quality outpatient services [1] - PVG employs a team of 16 physicians and over 160 staff members dedicated to delivering exceptional clinical outcomes [1] - Surgery Partners aims to leverage PVG's expertise to enhance its presence in the broader vascular market [1] Strategic Implications - The partnership with Surgery Partners is expected to enable PVG to scale its services nationally, addressing critical needs in the dialysis care ecosystem [1] - The acquisition represents a strategic move for Surgery Partners to enhance its portfolio of surgical centers with specialized vascular expertise [1] - Ziegler's involvement was highlighted as integral to the successful outcome of the acquisition process [1]