Albert Rice's questions to Surgery Partners Inc (SGRY) leadership • Q3 2024
Question
A.J. Rice from UBS inquired how the shift to higher-acuity procedures like total joints affects the balance between volume and pricing metrics over the long term. He also asked if the company experienced any supply chain issues, such as the IV bag shortage.
Answer
Executive Chairman Wayne DeVeydt explained that while higher-acuity cases take more OR time, they have a higher dollar contribution, and the company's long-term growth algorithm of 2-3% for both volume and rate remains the standard, despite quarterly fluctuations. CFO David Doherty confirmed they were aware of the IV bag shortage but, thanks to their procurement team and diverse supply partners, they did not have to cancel any cases and do not anticipate long-term pressure.