Surgery Partners Surpasses Expectations in Q1 2025 with Strong Organic Growth and Margin Expansion
Surgery Partners, a leading healthcare provider, has released its first quarter 2025 earnings call transcript, showcasing impressive financial results and growth prospects. The company's net revenue reached $776 million, while adjusted EBITDA hit $103.9 million, both in line with expectations.
According to Eric Evans, CEO of Surgery Partners, the firm's focus on delivering high-quality care has contributed to its success. "Our team continues to deliver on our mission to enhance patient quality of life through partnership," he stated during the call.
One of the key highlights from the quarter is the company's strong organic growth, which saw a 5% increase in same-facility revenue. This was driven by a 6.5% surge in surgical cases, offset by a 1% decline in rates primarily due to robust growth in lower acuity specialties.
The company's ability to execute on its long-term growth algorithm has also been impressive, with adjusted EBITDA growing nearly 7% and net revenue increasing 8% compared to the prior year. Surgery Partners' CEO Eric Evans emphasized the consistency of their growth algorithm, stating, "Our growth in 2025 is attributed to continued strong organic results including same-facility revenue growth of over 5%."
The company's focus on deploying capital for M&A and enhancing margins has also contributed to its success. Dave Doherty, CFO, noted that the firm's financial results announced this morning are a testament to the focus of their colleagues and physician partners who serve their communities with valuable, high-quality care.
Surgery Partners' growth prospects look promising, particularly in the area of orthopedic cases. The company performed over 29,000 orthopedic cases in the first quarter of 2025, representing a 3.4% increase from the prior year, with most of this growth driven by total joint procedures. Total joint surgeries grew an impressive 22% compared to the prior year.
The company's investment in surgical robots has also been paying off, enabling their physician partners to perform increasingly complex and higher acuity procedures. In the first quarter, Surgery Partners added nearly 150 new physicians to their facilities, many of whom are expected to eventually become partners.
As the healthcare landscape continues to evolve, Surgery Partners remains well-positioned with a strong business model that prioritizes patient care and growth prospects. The company's ability to execute on its long-term growth algorithm and deploy capital for M&A has led to impressive financial results in Q1 2025.
