Ortelius Delivers Open Letter to Surgery Partners Stockholders

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]