AmSurg Revenue Up, Profits Decline on Medicare Payment Revisions

AmSurg Corp. has reported its financial results for the first quarter ended March 31, with revenues up but profits declining, according to a company news release and news reports.

 

Revenues for the quarter were $179,415,000, a 6 percent increase over the first quarter of 2010, attributable to the acquisition of nine ambulatory surgery centers during the trailing 12 months.

 

The company saw an 8 percent decline in profits, attributable to the revision of the Medicare payment system for ASCs and higher interest costs related to the refinancing of the company's credit facility and a higher effective tax rate.

 

Total procedures for the first quarter increased 6 percent compared with the first quarter of 2010, primarily due to the acquisitions.

 

AmSurg made news earlier in April when it announced an agreement to acquire National Surgical Care for $173.5 million in cash. The company expects to add 18-20 new centers for the year, not including the NSC transaction.

 

Looking ahead to the rest of 2011 and into 2012, Christopher A. Holden, president and CEO of AmSurg, said, in the news release, "…we remain cautious about the impact of a weak economic environment and continuing high unemployment on our financial results for 2011 … Although we have very limited visibility about the impact of the nation's economic environment on our financial results for 2012, a number of factors support a substantially improved outlook for the year compared with 2011."

 

Read the company news release about the first quarter results for AmSurg.

 

Read more from AmSurg:

 

- AmSurg CEO Christopher Holden Expresses Optimism About Future of Company, Surgery Center Industry

 

- 56 ASC Management and Development Companies to Watch in 2011

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