Jack [Unknown Last Name]'s questions to Surgery Partners Inc (SGRY) leadership • Q3 2024
Question
Jack, on behalf of Brian, inquired about the drivers behind the quarter's weaker free cash flow and whether it was due to temporary working capital events. He also sought clarity on the company's strategic rationale for its surgical hospitals.
Answer
Executive Chairman Wayne DeVeydt and CFO David Doherty explained that cash flow is impacted by the dynamic nature of M&A, with transaction and integration costs running higher due to increased deal volume. Doherty also cited working capital timing, payer dynamics, and collection delays from Hurricane Helene as factors. CEO J. Evans clarified that their surgical hospitals are elective-focused facilities that serve as the core of a local ecosystem, enabling partnerships across the full acuity spectrum and driving growth in their surrounding ASCs.