Surgery Partners Surpasses $3 Billion Revenue Milestone, Reports 16% Adjusted EBITDA Growth
Surgery Partners, Inc., a leading surgical facilities company, has made significant strides in its fourth quarter of 2024, surpassing the $3 billion revenue mark for the first time. The company's impressive financial performance is a testament to its focus on delivering high-quality care and fostering strong partnerships with top-notch surgeons.
According to Eric Evans, CEO of Surgery Partners, the company's team has been instrumental in achieving this milestone through their dedication to enhancing patient quality of life. 'Our fourth quarter results are a testament to the focus of our colleagues and physician partners who serve our communities with valuable, high-quality, and convenient care,' he said during the recent earnings call.
The company reported full-year adjusted EBITDA growth of 16% and net revenue growth of 13.5%, resulting in margin expansion of 30 basis points. This performance is consistent with Surgery Partners' long-term growth algorithm, which focuses on organic growth, margin improvement, and deploying capital for mergers and acquisitions (M&A).
Surgery Partners' growth strategy has been yielding impressive results, driven by continued strong organic results, including same-facility revenue growth of 8%. The company's partnership model allows it to provide a safe, convenient, and cost-efficient environment that patients and payors prefer. This unique approach has enabled Surgery Partners to achieve above-average volume growth at higher acuity levels.
The company continues to invest in its growth through acquisitions, facility expansions, de novo developments, and service line expansions. These investments will contribute to reliable and consistent growth as the company enters 2025. Eric Evans highlighted the importance of these initiatives, stating that 'we continue to invest in Surgery Partners' growth through acquisitions, facility expansions, de novos, and service line expansions, as well as better, more efficient operations.'
One notable area of growth is in orthopedic procedures, where Surgery Partners performed over 117,000 cases in 2024, an 11% increase from the previous year. Total joint procedures grew by 50% in 2024, with over 70% of its surgical facilities capable of performing higher acuity orthopedic procedures and 41% currently doing total joint procedures.
Surgery Partners' ability to attract top talent has also been a key driver of growth. In 2024, the company added over 750 new physicians, many of whom will eventually become partners. This recruiting class includes all specialties with a skew towards orthopedic-focused physicians. The company expects these recruits to more than double their impact in 2025.
As Surgery Partners looks ahead to 2025, it is well-positioned to navigate the current regulatory environment. Eric Evans provided an initial outlook for the year, highlighting the company's focus on delivering high-quality care and fostering strong partnerships with top-notch surgeons. With its impressive financial performance and commitment to growth through strategic investments, Surgery Partners is poised to continue its success in the years to come.
