Surgery Partners, Inc. (NASDAQ:SGRY) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 08:30 am ET

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Surgery Partners, Inc. (NASDAQ:SGRY) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Surgery Partners, Inc. Second Quarter 2020 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to your host, Mr. Tom Cowhey, Chief Financial Officer for Surgery Partners. Thank you. You may begin.

Executive
Tom Cowhey

Good morning. And welcome to Surgery Partners second quarter 2020 earnings call. This is Tom Cowhey, Chief Financial Officer. Joining me today are Wayne DeVeydt, Surgery Partners' Executive Chairman; and Eric Evans Surgery Partners' Chief Executive Officer.

As a reminder, during this call we will make forward-looking statements. Risk factors that may impact those statements and could cause actual future results to differ materially from currently projected results are described in this morning's press release and the reports we file with the SEC. The company does not undertake any duty to update such forward-looking statements.

Additionally, during today's call, the company will discuss certain non-GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these measures can be found in our earnings release, which is posted on our website at surgerypartners.com and in our most recent quarterly report when filed.

With that, I'll turn the call over to Wayne. Wayne?

Executive
Wayne S. DeVeydt

Thank you, Tom. Good morning and thank you all for joining us today. Before we begin our call this morning, I would like to acknowledge and recognize our 10,000 plus associates and physician partners that continue to support the health care system and the needs of their patients. These are clearly unprecedented times and we are proud to be affiliated with these heroes, who have embodied our mission of enhancing patient quality of life through partnership during this public health crisis. On behalf of Surgery Partners' Board of Directors and management, thank you for your service and the sacrifices that you and your families are making each and every day.

Turning to our second quarter results. Over the past two plus years, we built our company for growth and applied a data driven approach to decision-making. We forged our strategy based on key data points, including but not limited to specialties expected to grow that is disproportionate rate versus industry averages. Contribution margin per minute based on specialty type, and anticipated tailwinds such as the transition of many Medicare related procedures from a higher cost inpatient setting to a lower-cost high quality outpatient setting. We also use data to support our physician recruiting efforts and to hold ourselves accountable for execution. Our strategy was built to support sustainable long-term double-digit growth. However, a data driven approach can only answer so many questions, including how a business model and team may perform during an unanticipated -- an unprecedented crisis like COVID-19. More importantly with the growth engine we established, be able to survive and continue to drive given our differentiated strategy and assets.

As you can see from our second quarter results, despite