Surgery Partners (SGRY) 1 Mar 222021 Q4 Earnings call transcript

Greetings. And welcome to Surgery Partners Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. turn Financial over Officer. to Dave your like Chief Doherty, now the to conference host, I’d Please ahead. go

Good afternoon. Dave And and Officer. year welcome to Surgery XXXX call. Partners earnings This is Doherty, Financial end Chief fourth quarter

me Eric Surgery and Joining Executive Executive Evans, are Surgery Partners’ Wayne Partners’ today Chairman; Officer. Chief DeVeydt,

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

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

Thank today. all you Good you, us Dave. afternoon for joining and thank

have They the serving employees to efforts times. begin, And we we unique others. workers frontline and support supporting caring opportunity the our embody to our I privilege during communities. and to these the spirit of these of Before would healthcare for all like moment to the a appreciate of and thank providing U.S. system, American take truly

$XXX.X adjusted XX% pleased results, year full million, to year. as to am compared I EBITDA financial to prior the Turning a report increase our of

$XXX,XXX nearly for record $X.X annual the greater surgery year, XXXX, cases, the more just a period and XXXX new X% high pre-pandemic billion, performed in revenue surgical XX% of than than almost shy of in For full we resulting partners.

the proud rising from especially and company associated regulatory and waves as and changing not successive are pandemic. variant rapidly a With these of results, Delta our was of cases omicron the pressures labor isolated We impact continued the landscape. of

discussed As while be model dynamic has management quality of providing the team how highest Board this continues and environment resilient our our Directors proven in we of the have navigated proud plus has XX,XXX patients. and operating challenges these before, to care to this associates our

continued these results COVID As value affirm quarter, labor results were our and pressures we cases, in recovery Louisiana of from facilities. we proposition our Despite at the business regional model Ida XX look closer our in power some the continue fourth by Hurricane markets the to and impacted our provide. select headwinds,

of XX.X% the the to year increased with year Net Same-facility over volume X.X% quarter, higher fourth revenues X.X% by include revenues quarter. quarter million, growth highlights revenue notable increased the and X.X% So approximately growth. per to case $XXX case following. compared prior prior net the

same the ASCs regular quarter and traditional settings year joint XX% prior the year. physician recruits the XX% of produce quarter quarter inpatient continues compared X,XXX physicians And the out were transition in to XX% facilities our use to to recruiting continue a in care strong procedures adding the efforts compared basis. We acute facilities outcomes, replacements over in new to of New finally, estimate accelerate, fourth XXXX. as on now to our approximately of our for more up

of total billion, built this with macro setting. continue With tailwinds of financial over associated in We time. for was and are the of in our that quality, $XXX high results centric cost reflection strong market the addressable our patient to a performing numerous moment procedures a believe benefit lower a company physician

we to moment to Eric, over take After continue a pipeline and capital the $XXX pleased to approximately times, significant announce discuss consolidate late that multiple were the I we Before are including to XXXX, EBITDA that industry. approximately highly efforts million three have call closed an raising this would to in in deals of in X fragmented closed average December. M&A transactions turn to adjusted our I like at

Our manages robust team consistently development and that an remains heading into business active strong pipeline XXXX.

acquisitions of beginning the deployed $XX have As already point incremental a we XXXX. since reference, an of million in

on As competence hand moment, This $XXX million gives growth prospects. year to the we XXXX XXXX. our want for in with have reach untapped balance revolver. in with significant we Dave a entered a discuss position to us and at to in capital will conviction strong sheet full our I least an commitment the deploying cash emphasize long-term

a pandemic, that, acquisitions, for their to to Off of $XXX ability to we the it and Our inorganic not quarter over call to and the fourth management growth. but supply as other raising the million. turn EBITDA the the let inclusive recent demonstrate reported labor strength outlook see our organic continues on pandemic, the complexities we me including pressures. range only and to with guidance strategies executes outlook associated million provide cost adjusted year-over-year results the our are of headwinds This XXXX navigate to team Eric, of significant is Eric? $XXX of growth anticipated challenges With

that our Today, company afternoon. the year. will Thank for three on focus the enter my guidance we comments updated areas as you, optimism explain for XXXX Wayne, will I and my good and

few results. a provide our of highlights will fourth additional quarter I First,

on our clinical finally, most initiatives, industry-related little will our the well organic and are care novo we spend health discuss care. partnership our value growth acquisitions on moment our and a the opportunities in recent we increasing COVID, deeper will the about placing focus and de to I development variant plan dive industry as experience recent Second, Omicron migrate with and talking the I our to as health continues pressures seen And labor system setting. a to highest have as

EBITDA in total greater our are basis. results, was topline and revenue with we pleased margins. indicated, higher strong growth fourth demonstrated than on XX% which As same-facility a The quarter reported and X.X% Wayne adjusted growth

affected has be all illnesses XX,XXX But temporarily pre-pandemic to and positions the levels to specialties physicians, pandemic, often our in higher cases over focused continues events been GI As necessary some the specific. line mentioned fact expectations, quarter our and if these surgical grew rescheduled business are in which with has these year increasingly tend cases, after patients. that our have temporary stabilized our to by constituents we compared site have the nature in and to are clinicians quarter, orthopedic of by investments the throughout that system. the that sought cases model due The in Surgical healthcare recruiting by mix this of affected as our weeks within case to successful. of cases largely be and also above on have rebounded facilities prior acuity

COVID to impact significant the the of and through manage demonstrates Our the resiliency our ability of in popularity quarter model. business

seen and is Another labor managing industry. we pressure closely very our in factor that watching the are

these total our to As costs higher and results you it believe that of on with some in up are our those operate. and in not consistent affected to these which variant, isolated will increase, than we the we comprehensive third We quarter this this were review, are quarter, about before, where pressures where environment we said have but most localized, not basis our note In afternoon, pressures. projected XXXX. points we by in supply but our we certainly showed of from amount revenue somewhat responses labor workplace we more reported due pressures, California were the were notably that Based temporary under demand fourth the in anticipated significantly widespread XX% our reported Omicron just insulated but it regions facilities. XXX and largely are

our developed and year considered January Dave of the closely best deferrals have more that but is for detail intelligence will saw labor We costs. identifying and the well view we reported nearly of labor talk high Rest rate early emerge we hotspots our labor EBITDA seeing and $XXX.X a hotspots company. When with COVID-related constantly and detailed regional manage ability as this largely our our efficiency, represent regional quarter proactively temporary, next, practices. as the labor million metrics the of operators in manage we trend for objective in we quickly pressures as enhanced adjusted robust pressure to any abate these labor more that Early XXXX. trends our to experience all-time assured for pressures reporting we for some begin executives this support about that rapidly premium of as that in key are XXXX, plans other statistics in $XXX.X million monitor arise. new and they and

the contribute our case level on from service targeted contribution in revenue higher to benefit per our overall relentless expansions line to We continue for and and margin highest recruitment that physician generate facility focus portfolio. rates

each walk these Let’s recruitment. with through areas, physician starting of

As quarter, was fourth the quarter year prior quarter. in physicians our XX% Wayne the recruiting very than recruiting team productive mentioned, in that more

typical or year than due core attrition, loss retirement XXXX of physicians as relocation. we new more For our across to of such the XXXX, XX% the full XXX nearly recruited all specialties, surgeons, outpacing meaningfully

and we next wave potential and We robotics, migration. have and Over and as MSK been continue believe facilities the state-of-the-art cardiac of be high big our equipment in our to cost growth XX% spine clinical specialties. procedures, position bullish to specialist our have lower investing migration to of most and us support areas. procedures to convenient the on is of which cardiovascular we for in capacity growth procedures particularly perform this XX% the recruiting, these earn To the orthopedic, provider efficient settings, the perform OR approximately

number doubled example, in system expect of we our by facilities. number XXXX. we robots in XX the to and have Since be XXXX, our have XX that end the of now For robots

XXXX. in helped particularly growth in has All this grown in fuel our have XX% total when XXXX rASCs, to cases of joint which procedures, compared MSK

focused specialty. exceeded the orthopedic since strategically Our procedures growth We this by on in see when this and slowing XX% XXXX, not future. do we have XX,XXX near grown

and for we facilities novo partnerships growing procedures preparing migration, we remain in is only capture innings. opportunities that the to While we are focusing de key are in Not we in pipeline with this the and also of on wave our influencers this space. in focused cardiac renovations increasingly early next are existing on equipment the of very investing specialty,

acquisitions in deployment As Wayne what X we times. XXXX approximately consistent mentioned, million accelerated seen approximately of multiples historically with with capital have at of $XXX pace has our of completed

approach is times depending to We have an into our in in put the talked minus, by seamlessly these integration. specialty, in $XXX confidence internal December, X three we pipeline the phases greater pace acquisitions of adjusted about on new including team facilities. bring where all in portfolio growth on or into the surgical strength demonstrated deal million orthopedic of past, target due the was the around in to enhancing and that separate we our that XX from of work down acquisitions our completed through the of growth full target deals, plus pricing our we within least which EBITDA very our gives the turn involved Nebraska, by us to which our platform. future excited a supplemented We integrating this and development teams This to based facilities X about platform a synergies. times first but months at Omaha, diligence team, add dedicated now functional aspect in important dedicated to that hospital are is are proud Reporting of

track and to So remains on far, -- in XXXX. strong aggressive our acquisitions XXXX pipeline this target. hit the are At

in we million January, additional within approximately range. targeted deals for closed $XX two mentioned multiple Wayne As our

core Our begin and now is focusing health systems additional with on plans. opportunities our inorganic for areas executing as to to and process and us growth, novo partnerships DNA such of health allows organic on de and partnerships M&A

there the as We more early exciting in that are are the opportunities fronts on stages of will in news share these coming development. quarters

geography an higher by that unique efficiency, technology Privia We in we us physician that facilities value-based and share compensation. focus best-in-class physician what gives this the market partnership entrance incentivized are to most clinic access month, also Earlier to matters on of into with This a our exploring doctors this Montana. gives growing Health patients. partnership from important our position their practices to allowing fosters partnerships during Privia announced and state large

state to be deal our value a high earnings, we Together, as is we our represents partnership growth services anticipation additional of potential long-term country. this monitoring this to value opportunity projected in expand the creation across Montana. neutral opportunities Although, of to elsewhere leading the it in XXXX strategic are

will continued $XXX EBITDA a our is optimism developed performance the about migration think the guidance, an share to our of growth to earning at of over which our Since to with should quarter having call, guide we strong new are then, $XXX plan as we print, quarter million a particularly this have the be year. of range what updated adjusted at million and Moving XXXX. acuity yield our our XXXX normal delivered to of of deal our January on we adjusted this XXXX. momentum of third high our Returning as on for fourth having we EBITDA $XXX when of and to guidance very business of with operating completed great M&A. cases a to in organization, least results, million, guidance coupled XXXX reaffirmed strong us allowed Underlying XXXX XX% revenue least raising in

we capital January stated, are year acquisitions, is exception. With and continue at strong. XXXX every to target million starting least we deployment $XXX of our Wayne no out As

we a COVID also being the pressures for cognizant somewhat are We labor supply of cautious lives, cost with part and short-term are it potential disruptions. our volume and as and that remains comes

confident can through in we as manage that these year we progresses, we the did As risks, XXXX. are

the ever, the high-quality today we and teams value to with collaboration centered surgery with in care, scaled We as are organic that and environment. are more a physician long-term key confident in our short position, solidifying uniquely on operations is goals. premise long-term, are built partners on stakeholders company’s our healthcare model, we and operators highly built is remain we in facilities. proposition believe partners executing growth cost such in on purpose to to marketplace. that financial our revenue over And and our will that business try results our positioned now, provide said, environment our managed who will recruiting, than our call cycle this our patient turn color outlook. With Dave. in to across summarize To surgical efficient, initiatives grow the provide I independent our new aligned Our and strategy differentiated Dave, achieve development, procurement, additional our

Eric. Thanks

in will quarter have the GI minutes increased XXX,XXX, considerations cases a and offset management on liquidity with move fourth that First, quarter the on facility returning I XX.X% by pain financial year lower the XXXX. before improved total and we $XXX business. a fourth few by surgical our Revenues in levels some new topline, X.X% from normalized moving as contributions to our for we to million, with were performance quarter acquisitions into same the in spend were higher the partly volumes fourth cases approximately Starting the revenue case our quarter. X.X% prior to than period. On basis,

of acuity than was our Looking year recovery and per recruiting and revenue at the efforts. continued higher approximately from driven case volume components net case of favorable volume case increase, increased pandemic X% approximately X% the this prior the and by pricing, period, mix

adjusted quarter to $X.X an XXXX XX% have million recognized fourth from period EBITDA we in XXXX, increase that $XX.X was Act XXXX. include $XX.X the as CARES translating Act million grant comparable XXXX. in from fourth These our $XXX.X the earnings, to grants operating $XX.X and income, recognized in CARES were quarter of results of to million million compared -- EBITDA of impact. a impact adjusted Turning million, grants Year-to-date,

balance approximately have we XX, of $X on grants as As XXXX, deferred sheet. December million liability the our of

in meaningful quarter, divestiture quarter. and overall the the of of and During transaction, we million our with integration acquisition related costs expense to fourth acquisition $XX.X recorded amount this a activity

disclosed as with facility hospital the any quarter in not associated adjusted losses began positive integration in our did acquisition EBITDA. Falls, third the transaction, XXXX, and Idaho producing we include community As of cost

to with position $XXX Moving used payments. XXXX, a $XXX from significantly equity fund strong on cash approximately Medicare completed $XX the liquidity. of in our year, closed and the quarter November advance partially the net cash million, We resulting acquisitions of In million on to second in in million we flow which million. of includes were $XXX ended that of approximately offering were this oversubscribed offering Proceeds proceeds December.

payments our will future deferred statements. revenue of funds continue these revenue Recoupment quarter. We second as have advanced from through in Medicare these the held financial

in receivable deal Partners made Moving flows fourth the worth and $XX multiple Surgery approximately the have we as I These approximately on $XX under had million. We a to agreement cash million deals December, X in average payment one operating quarter. times. of flows year three of cash tax $XXX million. mentioned an closed deals

heard leverage. we the that calculated points capital acknowledging agreement, times. value we can the end at impact before, EBITDA maintaining in total November, range the ratio leverage equity total have appropriate balance the under between positively X.X the equity accretive to fourth higher. structure create net discussed been This of basis EBITDA range of XX times of a the agreement represents to of quarter, have would payment partially The credit approximately the you target offset of credit deployment think and company’s significant debt to debt net was times ratio As a by as ratio, X a decreased acquisitions. to raise We by Medicare capital. Normalizing company’s us funds, our through while good X advance impacted for

the this lower near-term float X operations positive the generating cash begin to leverage expect X that times in as upper times redeploy. we XXXX for us to free turning can future. also we a from expect range We to flow is in point

the XXXX and include of other million, tax Hospital receivable for XX% of December payroll $XX funding the payments in final agreement the Community of Idaho largest $X the uses our taxes cash of Falls repayment for from under million. maturation deferred approximately continued material the of the Some last of

a out XXXX earn shareholder an assets late inflows million. settled last from worth and collectively We are year payment anesthesia from $XX expecting also sale of lawsuit material cash our approximately

we opportunity at We which notes, year and are lower XXX callable to have meaningfully in our further fixed carry charges if XX% XXXX of coupon. this a our refinance April

Our XXXX. of was $XXX XX, revolver December undrawn as million

covenants our evaluate cash term capital most loan revolver, of company execute sufficient in we on an project As has that our structure as quarter, with as annual key cardiology, January. acquisitions such the financial engaging orthopedics the to hand and XXXX. capital we released emphasis continue a the goal, into untapped momentum continued this completed Through growth inclusive deployment million lines and And on our the both fourth will the and $XXX flexible reminder, high rate or targeting have no recently we strong on carried appropriately senior on to strategic fourth finish and physician our quarter results, we have the to XXXX, fuel After a expanding in afternoon service notes. all the value recruits with negotiations the trajectory. liquidity

of We million for are guidance to $XXX adjusted range $XXX our raising a to EBITDA XXXX million.

about costs, given optimistic XXXX, pandemic is associated successfully far. are we which and prudent risks inflation the with range We have believe continuing labor COVID-XX related navigated and but this so the

On results recruitment, ranges, the reported from combined believe we acquisitions, least managed the compared growth billion year XXXX of efforts out rate XXXX are margins EBITDA midpoint in to the at $X.X grants effects the would from revenue, of organic in with by of help driven excluding adjusted after the case revenue of a least expand mid-XXXX. impact At will I those and cycle sequestration of as at which achieve and investments contributions of XX% results. the growth XXXX prior overcome care phasing topline, balance growth, from representing we can growth baseline over the when

a deductibles, speaking. pattern, our the to business relatively and annual quarter results payers by first commercial lower in fourth, natural driven the tend resetting As for in skew higher our a seasonal reminder, has that largely

XXXX We approximately results with the underlying are performance representing consistent with of estimated seasonality representing quarter will have year an pre-pandemic pattern fourth XX% projected projecting XX%. levels full a quarter first our and

potential through organic efficiency. share growth, new revenue growth and Risks historical due procedures, leverage capture to model We scale high cycle to maintain consistent same-facility and annual our and are our pressures revenue capital confident labor to by are our acuity our for procurement, impacts contemplating. the are our and to beyond offset our workflow currently ability overall opportunity in our These markets continued to the extended ability and certain deploy more remain increased on and additional which managing outlook risks focus accretive COVID-XX cost in transactions operating on that, costs. we

XXXX, our versus to support of am share continue exceptional billion momentum ranks outstanding confident continue experience. evaluate offer physician, I’d and business call As in The fundamentals clinical patient risks our to and across highly continue partners we our strong we in opportunity the back to I and questions. that, team turn the with clinicians skilled join to to enormous a to over and momentum of are are $XXX of lines like management addressable and With opportunity. solid earn quality product our and experienced outlook that see market this and multiple geographies. for facilities this growth to in strength enabling Operator? to and an total us operator fair the the proud

[Operator you sir. Brian from a have much, ahead. Jefferies. very question the with We of Please go Tanquilut Thank line first Instructions]

you but impact pretty great I providers. bit clear my December that Congrats volumes great Good afternoon, strength, Wayne QX on Hey. for think a January on an in or guess Eric, little and year. most for it’s about of Omicron healthcare first question Well, talked and I quarter guys. either had a

the with have that so today and about February say that how you us quarter and virus? back, just around saw or want thinking from the in surges performance during any hear, or share of March that to in then So you bounce those you far can what terms any, if with volume terms seen in you color of periods, are a in you see drag the

the Hey. you for Brian, thank question.

who time be impacted we I know was December whether it by all variant, say would January or think this it’s fair someone in frame. to

a the was, And from it our two at was our As how we pressure there nurses? surgeons, as separate we think actual did our then labor from patients, question, One any that about, that responding really late within is, impact looked the result market. within, that variant of lenses. to

going Eric, respond Eric end year to we well let a commentary as the in seen am rebound, the into give terms what at of going I And then have February those. as So of maybe to of both timeframe. little both

for too. comments the Yeah. Thanks Brian.

the pleased finished it. the certainly we certainly When are kind We than think we way year. you regions impact Omicron, saw of certain We the with it saw our about more others. from in

about have particularly we and cases. period Omicron, They a it’s been or with though within are physician then situation a relatively of As a talked those a before where never even cancel it’s whether we short rescheduled patient, time.

end getting of Patients so full have seen up done. towards what’s we the kind just recovery. been areas within not coming had particularly the about quickly usually of pressure we and within rescheduled that of of quickly, if a and the relatively where come And they seen into timeline quarter, the XXXX the And year encouraging definitely are the first part is then you points. They month, abate. think

if They So pain that coming quite ENT are explore back the past. about we think you procedures back of those really are coming strongly. in management, some

actually And expect we be quarter January are start was talked bounce that clearly February by seen -- be to year. and affected, we have but where the we the somewhat have our really expect what in actually it and back to so we we about. of encouraged

the to with perspective, does Clearly, often affect have are people how that As us? far from them cover Wayne you labor. pointed when sick premium pressure, as labor short-term think to out I

you job. that us. for So typically contract could be we labor that remind time could labor, over over on have just But I’d be time a preferred pressure,

be in be than different ENT, quite a hospitals. don’t positions honestly are just you see things. orthopedics, our staffing positions our are bit care over higher ratio They having of can the are to of they about be elective. extended you where just business clinical They normal person tend And traditional hours. quite is acute are They the that time. So in typically or to covering jobs lots if think require instead specialized nurse

business there’s edges on is that And in like and has we based volume those good. QX so lessening. too, starting needed around good see big that’s The pressure opportunity Omicron usage like pressure we point using when is pressures, have when feel And we to levels the the the much still is deal focus that across honest, acute falling within that quite falling labor like variances. orders different news hospital sure our done are pressure high we with extra past, care see creates of hospitals, industry obviously on with The We down. top shortage the deal to be have all work to of license that to within care make we nursing our, of givers. nursery clinical such

quite feel, largely so confident manage And we it feel we we can through markets. again. It’s been transient our in

year biggest what disruption back and probably with start the manage through was how the bounce we experienced have encouraged with quickly We period far. we it really so have of the seen and COVID definitely,

strategy about Privia you then as awesome. prepared joint your talked I follow-up That’s guess in venture. the remarks, novo And you, my well de as

those? how are how you there, then maybe you and based just other addressing value color are about how you you, you on curious novo, on looking as can comments and us some any de of just doing if such practices primary into you arrangements or sort are how what with share with thought So care are your Privia some share at could you entry

on expanding de substantial bit basis novo start and strategy relationship little investments how a novo will more over a to are as specifically, ask and de years `our I to the we but comment on we maybe and four am of But I lot Privia last Eric more over going made previous largest the being So the in a being time on we those and various Hospital variants them during started all years, Community the the COVID-XX, focusing up Falls Idaho out. we obviously have a that those novo. and running spent once the got all two came successful de reminder,

to the be foot years I and our started couple back are position last, successful highly novos last that sure we where say wave make X XX efforts took have that Eric and of to our over the our at, would novos de next would that so am over really that I those on would make de putting That pressure novos would months on Privia and and by be you the this of successful team comment exciting recruitment Eric highly the to and the goes will what let then off relationship. things our think the to existing physician existing years going of pedal being So of hear recruitment that said, we seeing, slightly around efforts the be sure and as de and are implemented. kind more I year

Thanks that for Yeah. question.

think I things. would say de of couple novo side, the on a I

not have several Let we a that do. me first growth separate a We problem. de this year novos thing. It’s new typically

However, how it’s part is industry the growing. big increasingly of an

that’s or de If the you out we years. de data there, annual novo an increase look X% on represents represents of count the basis at capacity centers couple about think of a novo in last

time. big this place remind leaning been And it’s the of a, though, become that we doing quite for just a space. certainly in. some it’s our I you, a part have of are So growth would we

have strategy. been tell the on novo de too the is side what I really we On you focused would

novos out hospitals. we leaning positioning a we that exciting orthopedics cardiology in of the de our can increase make ourselves our are several to over particularly opportunities think there. are We come have number of a next a, to part as that, in years. We growth of pace be to do sure center And double-digit

hospital that specialty excited Sometimes very than it’s about. quite and specific, easier a we is facility start so something in that purpose-built with are to single a

always I the care. your fee-for-service value-based with within our everyone question reminding around up value-based site. think, way we follow world, move my right? are world, us value-based think to in in care start care the I discussion about back current to Privia the patients Brian, to on simplest So is

amount but well-positioned healthcare value-based organizations where independent around refer most We we continues the only growing to for hear a primary reimbursement, what also efficiency are that operator think we or are that to there’s XX% you would will around him in national a independent said, the With I focused treatment. to operator, partner value save really resonate. of drive story providing call to as particularly minded the they you that really on are and really that’s And as care, a effective XX%, system. like that aligning how payviders, I care with an

so of work, make over drive people states trying see is sure where stay of value you cost, like-minded kind having Montana, But an proposition, value not term when aligned quality best think aligned where being almost reputations, an it’s physicians in to short bringing to state this exclusively opportunities primary set the facilities have that’s the year. our We build longer national we where have footprint. it’s them at the other certainly care game their this to independent whether and positioned that’s care with do think really right able it are around model providers of that to be extremely in the and with in care can about operator. value-based relied are historically taken mentioned, about footprint of or other we in think to well because care the of recruiting align the we or a Privia growing if of quite patients We idea a and group And we as the Privia you Montana, changer we going attractive. across

the to more that excited of value, us choice, a referral will really directly incentivized stream a if to we kind so newer to come there on to changing natural that. drive So are It that. people that development to way of beginning is about are be that allows tie certainly the

we And accelerate thing is window. the novo de on working the would over to been XX last last have months opportunities just this I maybe add

that it’s we As partnerships months than creation the you usually the we period so before mentioned, opportunities seen actually to have think there’s We have value XX sooner right positive individuals to months that occurs in the the accelerate EBITDA that the XX EBITDA. right and with typical see digestive of past. much

So, in share we hopefully, right number be and or in we next excited two. the quarter come, we now, are will again, have to about things more able of the but more hopper a to

Awesome. Thank you, guys.

Thank you.

from question Citi. Cassorla Please line ahead. go of the with Jason next have We

evening. Good guys. Thanks, Great.

the XXXX you you the revenue and between frame rollover and growth turn from guidance maybe contribution growth. that just so the Can attribution expecting of Just to help wanted And you to of considering pent-up over call COVID demand the then it fields just that your argument? XXXX, XX% maybe for organic, understand. are completed Thanks. we

million feel low say growth. organic digit high are any then Dave about an capital growth that, of we you mid-year generally the single for revenue of basis. you average the our around if again, can for to digit, of with into free portion kind targeting the the if And average deployment deployment would remind delta in double on there. but absolute of revenue is timeline, think conventional maybe specifics you I’d back chime can So I $XXX use here, we

the we that we government We we with. XX%, money So bifurcate gave didn’t the bifurcate the bifurcate at that we covering. headwind we dealing sequestration when didn’t are out least out didn’t are

when So delta underlying course, XX% that headwinds. actually ultimately, single digit, our greater on high then of it of actually organic but perspective, then, rate is top double and M&A. than more, digit And those think low the as about growing overcoming from that, the through, we you through consider growth are

But good look of that with over this I what agree we contribution our you experienced a trend acquisition we growth, a mix we Wayne, years Yeah. that to from good this would continue. as case especially of activity. just year, have clearly expect we rate reported you growth, couple and what with past at both have coming same-store

plan are year. next we fairly a balanced way growth at looking it’s for the So that

Got it.

forward, have offset growth you your kind physicians in adds given my attrition noted remarks? go of growth we the just as just XX% I you you the there? wanted the Is in And in your help to terms Maybe that Thanks. for prepared in help need Is engine follow-up, of how about You physician focus year-over-year moving think what physician to out natural Surgery. to of at maybe Thanks. just growth just targeted recruitment that prepared this discussed remarks? Okay. should XXXX.

XX% the base. retention around physician it probably in way is think average our to best we that about So

that average varies around transient, retain But versus of Now, us either those percentile. with somewhere cetera. as XX maybe between somewhat et owners that returning you averages, or those think, that that relocating, generally are we

you relocate to we to So physician is generally have retire, all things to or being of got like of a just growth be equal, target to least base or each those -- we see X% what choose recover professions to able to new change so recruit at would of And level year. whole and replenishing that top then, course, basically that. try on that

tell But I to we don’t going I a been knows be up. So high always still, this the say focused year, there would specialties would level on where that acuity very ophthalmology, heavily the team’s we that multiple been pursuing have will because who are that actively XX% I and know end that et and are cetera. we be procedures, it whether pleased with very done I have there’s GI, you

around aligned would we will growth. the have their and doctors. I team think right still double-digit recruiting say be we and I incentives So the physicians

you want will around anything So aligned that be add? Eric, to But double-digit that growth.

No.

points. have think hit you key the I

approach And making growth. very that think we it’s I drive gains. usually data-driven -- has year, are have this experienced that team we a to every

in And I not This we gains I we something the do what -- procedures, procedures We see of not type slowing attracting actually the will on down. strengthened. continue to market. that’s making are but is only our every is say right docs pipeline guess

entering as year as pipeline strong Our ever been. it’s is this

actually, pipeline it’s Our it’s as ever strong this as than been, is been. stronger say ever entering year I’d

opportunities how that and look I our big how do that new that and community value facility, that a traction one we, that expect big organic well, the have bring in is it’s around propositions of really executed to when on that we the and a, facilities, being we growth with gain our do value positions out remain and most so really change? important as drive acquire And in upon the to a at thoughtful part of market obviously, we we can don’t we go

Great. for Thanks color. the

course. Of

Thank you.

Please America. Bank have with Fischbeck next We Kevin from question of ahead. line go of the

Thanks. includes or think in the for out is headwinds Great. that, maybe there and question, CARES right. some other think to about when XXXX, from we I about is the way All pressure there that recognition those had labor cost the guess your think Is that a to impact any we that? proxy good way from first guidance those spike pandemic. supply I and said

you for had ultimately there debate like subsidize we volume. shortfalls been to or it, we measure ultimately do trying to be were where is wrap internally on timing around mean, had you cares but big this I that from labor hands our how have and shortcomings, how it it, pressure have whether grants

I guidance, that, we that, say proxy say in the sequestration a our headwind have we that entire that a proxy. of know and updated if to we say well. as it’s guidance overcome overcome had revised would have reasonable in little to that have the our So probably had $XX to completely don’t it’s south that, full I’d but is I million right bit

overall compare on that kind look time XXX I about And basis up to year you closer this you would to of last now like we if kind we at cost, So points, this. investing view the XXXX levels, if headwind, at are labor just it of are the through are but we

but but the number, proxy. the south obviously twenty prior that I that probably of point, were of XXXX that So, bit this we at but rules figuring CMS use year, a meaning XXXX rolled grant publishing south a but, I would use, would, related a some as that into out I’d little But, as reasonable was proxy to because grants of the

Yeah. we is you year, that basically quarter. as in Wayne is know are over clearly do up of performance year, as the to say gained have we of prior was in thinking next it our talked month same I a would some of have, revenue have rolling through that XXXX. reason we over It’s the the even to It’s just been into current we able you our the about about about at if kind XXXX. but this of part COVID. efficiencies But if part we the thought over of the And maybe how percentage the second point, through look kind prior of

being that simply of just by have outrun more efficient. So we some

are that We have of for noise. kind year kept because we think in still period we this to higher have there going rate a

to again great So area to tend we three, license nursing coming two, ways pressure because that, There basis. capacity. when in. that Number based certainly is like meet that look one really we make off to where some that, sure done kind through through retain of manage physicians top and a includes this have, is have we much manage to but this and a that have we is And continue we have adjusting job say will in our transitional of can that the there, over we years, pressured number to, understanding a, of to floating expectation industry we the people the we we best on mix number are our an for then has working need. knowledge it this how on our is is

this you as managed in negotiations going to about longer benefiting be or are talking go, to be do negotiations. be that? sooner or thinking we is from strategic in have will that rate Where far these Okay. in I this to two to years me wrap care three process? up And go? seem guess then the Should we we than That’s still much How that helpful. we as

Yeah.

still fair there. So of we go I a have ways amount think to

still space. are player We within a value our

couple in fairly of we I progress in markets. We made a making core certainly, lot last paid sure getting are and the think, have years our of

are incentive that to of to some make on when some would discussions making say, sharing are expansions place, more the where making facility created. can, comes we value they we go interesting how sure are lines I high ensure partnering should more physicians professional of we these our sure are Now the do the they with sure comes strategic savings of we in ahead fee service that giving opportunity for what physicians to sure make and it we real we the contracted to our

several next in a partner. in going to markets. our I us certainly to We are price have leader that’s think or any be but way the real not over of opportunity for of years, So shape form opportunity plenty we the still

as very proposition independent to value an that resonate. have in a this continues space We strong player and

contractual I were And the you, And this we most you building arrangements care and it. we four contracting are out know, approach remind how as started to length. just in Kevin, when around wanted journey team generally managed years ago, and three we years

And into of three-year renew running, XXX, to we so had year even of move they best the bite initial were case, contracts to needed over them you all to. ground of a the we third and each hit as But about have contracts we period. got where if an the able to know, as -- these

think I have would top trajectory we say hit that are don’t the on, the I knowing So of yet. mountain we the

got another get five have of that still to at system we climbing top to for think have scale we even round. the years value further would should to three that mountain. we of the I more years the point, think And that drive another even we will

would point. are this inning, say we in I at fourth maybe So the

contract We are from a value are first negotiation. the inning we not away in the anymore, creators long way so but from

prepares our a actually rethink we our to that six-figure partnerships, procedures value these and in procedure prop our are are really that inning the we I procedures I a you today Yeah. thinking roll just doing services, you And the think just move would that, are more mean, Kevin, us are much changes allows going that spine, back. higher about savings into of as way to reminder, drive to together. acuity started because hips, per of point knees, value as types we cardiology, so the I renegotiate is

are on as very has thought fifth, say creating way And system to larger Surgery so CMS safe I the ultimately, value procedures to gave larger aligning sure be for initially, in were think it’s proven gotten you would like, are higher leaned in for we from opportunity be or fourth space as I ways I an -- inning to I probably that but out our I where if acuity going and don’t we accretive a make for that is for Partners. partnership think

All Thank Great. right. you.

you. Thank

from ahead. have James Barclays. line Sarah question of We next the go Please with

on is This Sarah. Steven Yeah. Hi. for Braun

Hey, Steve.

Hey. How’s it going?

Good.

question on, guess, X that So you and at multiple a acquisitions the like the I guys stated times.

like was had had last as was may there multiple? -- in X up have there seen that like that average maybe the deals since any X.X multiple times the the pertaining XXXX. is Was were three the reason times number you stepped that December? closed that, multiple I Was that the that the like a So guess bit? to for paid we reason

great question. It’s Yeah. a

low are about which as they times well sometimes a as as you the range as in. multiples, function If X asset, to closer as to literally think times, times. as that It’s of the even specialty high on X XX vary can of a as quality be the in they

you specialties. if repositioning So growth all go asset, you back pruning to the was we high when were about the historically, if think that that the into way XXXX, book

be certain so we higher. And others getting will lower assets a multiples on were

all-in, when at our But think on significant specialties already you service. If X slightly into the multiple cardio, moved are those around outpatient more than And acquisitions, an a other of a trailing that they heavy multiple generally a MSK lines in pre-synergies. you look and those, setting. times have very have portion about XX-month higher recent

opening comments, basis. take get about these synergies after think a So on we things in usually as we said about, a Eric if you off on turn the

will seven multiples think So times to driver. nine to hover average and but the range really continue big see you the I is in specialty

the inorganic it. you Got in guess, like much is like consideration the so other one, deals taking XXXX? growth XXXX, the for revenue that then of Thanks deals much may on guide do the guess into the like of how incremental versus I how I that, and three for

gotten until one We do they full not count maturity. transactions as year through have organic of

come So completed those will December, those that none transactions growth of organic model in just counter forward M&A. we

growth very is organic pure growth. So our a

mark. one and year, the the at that for we a that value point what is then create after look we year to the at have We own got creation asset

inorganic how that it. was was I Got dissecting saying No. I that Yeah. pieces when growth on I was was I think talked you saying about, the maybe? sorry, factored algorithm, like M&A of hadn’t you was piece were the the much into of

Yeah.

just we So a I little would just, would clarify that bit.

So, clearly to as don’t we deploy. we put yeah, we about us have still to upside for that. this build is going we think capital year, think And have, ahead that way don’t try so there work. into on additional to We we

given will the We it capital, year shouldn’t. we of we course look go and we But deploy have have we have any through this of as year that assumptions is reason no we the reality on like.

we certainly have to about us build range continues a exceed there We the got that for are strong pipeline to opportunities to talked today.

Yeah.

it. I think think model for in, of

how roughly convention mid-year mid-year extent million, is use that we timeline use of and a an the a the outlook, we a kind relative we you use As eight-multiple the X% the mid-year that’s at what $XXX back use that convention creation rounding can target convention That’s rounding said, as as an And million, than to factor accelerate to least use say. and additive what $XXX additive to the to would outlook. extent into to roughly million, we do value factor. to a the $XXX we could that it be more

robust lot as it’s ever moving here, parts of is the as So been. pipeline a we would say but

thing it forward. novo about clarify I de one on talked lost sure And opportunities want doesn’t Yeah. we is didn’t earlier, I get going is us to the make That a for this call million good do separate -- to we we to plan, our and our $XXX ability going apart about we are feel our from going do traditional right? M&A, to that. put are But normal together

that, novo have apart can de growth pipeline. Separate quite to great We from accretive that in a think our we also be this additional we future. and opportunity see

Thank Great. Okay. you.

Thanks.

with from you. Thank ahead. question And Qiu line next have Stifel. Tao go Please of the we

the understand the cadence trying evening. year. Good revenue am Hey. for just to I

expect pretty are the you you are that you quickly. are that off rescheduling year. time, it be there -- sounds XQ the to like same full At mentioned You procedures revenue delayed XX%

the So be XQ first improvement the experience to in impact staffing terms impact quarter? the improving in of might about on think pent-up similar we actually we higher. what should -- XXXX, demand where more of How the was in saw

Well, so, Tao, question. thanks for the

do but but are seasonality absolutely the right. We earnings we look our first quarterly revenue have seen we piece But those adjusted we those on giving inside with just somewhat that the on So off, impacted might at guidance have what at not a yet, still Omicron, you things as look cases are looked of the at looking level. consistent we pre-pandemic quarter. be to of are by

So period have time, pattern been anything that being long might remaining for feel overall delayed consistent. which still that of isn’t comfortable somewhat with delayed earnings is why we a

Yeah.

are fourth of the it And tends our about growth XX% by have reality XX%, to of make our of some norm to year typically bit. just the we we going sure pointed back are us is little offset is is, about our business, seasonality back think as recovery time, earlier, I certainly that, to quarter of revenues. fast you getting to be what in that we a really you long normal, as a are that of, this as XX%. But is a we particularly covered quarter as, is this many when we kind QX, regressing places, to want which XX%, mean, we We some are we and which kind But out. actually pace. are big talked know to see new as disruption. our some

Yeah.

course, and that tend patients the part will little the that those. year reimbursement those commercial-based deductibles mix, to is that think later of cases the are of in of on in bit a bring of impact I

so for you those which of a So, get back to is part rather years couple probably again past is natural pre-pandemic or as the comparable it better you levels, clearly. of comparison than just do

is grant you deferred then that a $ you. million think income, I Got guys the guidance including the And from you there’s liability about talk EBITDA gave? adjusted

that relatively No. grant it all you not. received. of gets small, itself. recorded in the the subject income that facility is And is It the of kind received was They applicability of the to as the know, nature grant

million was $X that’s the sheet balance the that fourth of on part large received a grants. quarter in so And still

we portfolio the on of dependent losses. incurred that COVID-related be upon losses look be used will it carefully rest that actual across it, based And and at the that so just how were may it particular at then facility

unclear into all. that, be that So but more if how to pushed the come on year, might at

more no have receiving in That’s around grants. guidance. We assumptions the

as that Yeah. without manage business money That’s what sheet our We like very you to those our view apply we job. against have on in balance saw We a would that the it but is similar QX. facility and hedge, that to a grants. if that impacted particular facility,

impacted QX And but and Omicron the that not by by many so were were wage that’s we why we strong able to we only were have such markets a pressures. to recognize able execute, grants and and that

upside. a of hedge it assuming as not in view and either we guidance our potential no, or it any So are

If that Xs. think, the to Dave, fair comfortable raise I make Understood. to long equity in capital to Is Great. it there’s to capital I one mentioned kind of more, leverage low say no and given taking deployment may that are squeeze target? the you high you need near-term, Xs trying

Say part of again. sorry. your am that last I question

So a given equity near Is fair raise term. no in is million, just here, the it there my to seems capital Thank characterization? you. need deployment math like target doing of $XXX capital that

fair very It’s a yeah, characterization. fair very --

I territory some $X.XXXX give flow dollar be positive $XXX of can into going with refinance. have will not and also know, capital. we positive cash That debt moves of north now for $X.XX call that, And XX% rate flow. us business improving further We that on more I $X.XXXX remind you our we to above us every us cash position. than flexibility $XXX a that consolidated ability undrawn to revolver. would raise around capital, converts to flow million of have do of to flow the EBITDA even need top as And million in interest cash we are that ample everybody and our positive see a cash more cash,

So I cash a would in flow like say we position. position are we feel very strong

in without are we we So I strong to position having a like very capital. say would feel raise additional

you. Thank

Thank you.

go the We Taylor Gary have line next from Please Cowen. of ahead. question with

to to I evening. will was forward or Hey. cash quickly, good pretty afternoon to flow of or Dave Good XXXX look wanted ask ripping CapEx does a back but kind ask have I through maintenance the current your free like portfolio? go to what given go transcript. going now lot a in of that question numbers recurring, about was

walk those to through if pretty in need you kind it’s out is And again This I happy Gary. nicely laid you are to. you Sure. numbers am normalized right, somewhat Dave, reported of Yeah. year level around we all and talking million shy I CapEx those a or points. last think of for of $XX just $XX just us, CapEx us was for But million of procedures.

use. a normal investments growth talking as to that a number about de necessary, Eric maintenance basis, the so forward that that’s And regard was novo well look with as we to as good are on

cost had per acuity for it. we tracks about just down X.X quarter, procedure want obvious quarter, I you about closely per Got more costs with this growth my higher pretty per have trend Supply second procedure as your look procedures. But particularly to revenue pretty Then costs as reasons. case, supply done supply good mean, I this question, point. ask actually

decent revenue growth, per are a pretty versus we procedure you. was pretty from what wide sort had gap to of seeing You used

So of, was cases the that there anything of else anything this performance? driving quarter or about mix

suppliers live done We other managing great is Dave our high I to back see it there some close pain got change with job large lower general, we to enough in that say to would question chain level, sure a preference. of to some fantastic that. little and a our is on would can have In carry more and distributors, a high we see of It’s late I let what just large in work acuity. start means bit general, been know feel and supply will this, driving we lower has margin, team we did matter the a that you you progress we for don’t Dave in build come we are upon our physicians quarter. very procedures. like give the And are started making it. certainly I to but through what But cases, proactive detail, supply return and Eric, hopefully staying those a we cost disruptions. and we large, chain supply to sustainable In have of in cases have simply stock maybe add

Yeah.

quarter commercial the think, fourth consider, business to does have higher one, other I of in points think there. I two mix

right. sequential somewhat are revenue also to, you And than a see, which quarter to as than comparison you see a say, little might So going be normal. metric that, is compared quarter just at a that fourth you have look you fourth different going the bit. your to Eric’s XXXX, mix impact to absolutely as for better of returned that example, And

and As long going vendors current have at suppliers persist we for. about the how kind we a there, key, and our as supply trends about we of view with of least are to in talk chain future and worked we talking the think that’s key

see for Eric trends some of And kind reasonable much buying us as are so, also mentioning different as to we pockets. advance our either those like deploy do that way a in the things, strategies, of we taking And manage finding stock, labor advantage that of are can them. -- physicians of in also them for alternatives was

there. ways inflation manage So much help pressure, like we look to our very, we the factor at offset cost that can closely very labor

it. you. Got Thank

Thank you.

from have Mayo Please ahead. SVB go next with the question Leerink. We Whit of line

physicians of growth centers for in the in the level to have reflecting when XXXX this physicians? year. physicians go the guess second can may various really And now? number you broader are the in you and question significant what percent that but look how wanted they don’t XXXX Hey. come back just your at back or Thanks. XXXX, the and a having of Good performing yet, a same-store on I on from new productivity group that onboarded hugely afternoon. is this comment those is to I I of are XX% the think cohorts increase new

Yeah.

-- question. So the that. will I it Eric. take this for is Whit, thanks

progress We we half least. cohorts in have time, talked of about is up business at quite it for the looked and the kind hold of have this and some before. which the at to how year-over-year this And we second is continues and over think year about time, typically true, the they

it’s or actually double… a it’s I higher XX% the think

Yeah.

in …often two. year

So typically we It double that year three. continues two. business have in growth year a to in

to have cohort-by-cohort. And Yet you so those. of one is look do this

about a you the not upon obviously, story. growth partners as much in we gotten all as as plans, be on but think a year a prior going backfill retention, as it’s as that have and driving more XX% it’s high have two, And our especially actually part we kind in year, good we from the certainly year of refined given to -- If it it’s of sure working that, have the making big cohort on we increasingly really builds additive. of itself, becomes this been have

going process. It two earlier, a is so it it’s builds positions doubles roughly been the -- is It through our that and ever in as upon mentioned with it ultimately, strong are pipeline itself. our as I And specialties is queue bit our recruitment year with makes And in the again I tell But physicians, service we higher recruiting. of it line. bigger same-store new couldn’t there. together also acuity with and mixes outside percentage my been you a Clearly, difference. our have head growth new a

growth a those new of are so it’s add a certainly and Same to So, But be cardiology we had program, its physicians, part apart joint it with pull as of part connected. program, would just that we it’s equipment, of robotics, organic its piece. hard kind just a add, that new big say as of new service two lines. as we part

remember, recruited bit idea some and some color get Eric’s to December. Maybe of typical in in comment, if a though, recruited January, take to one around physician year again, get try that, the physicians put a little

first when to kind Eric So averages, those of at look evolved, years back from look it second look XXXX doubles and as vintage said $XX So XXXX, XXXX, this that if how team $XX kind in three in the average to typical of so million it the by to we were had a has year the at one is revenue, million there. the are the of then you to vintage year grows right? in ability

like fully and if vintage about there, organic get is about you about more a recruitment $XXX million recognize think that growth efforts. coming think from rate time. important that is when you over of run And So of these what’s gets out are with billion starting to revenue to $X just our you half to

offsetting is the some of cetera. retirement lose of et to Now course, then docs you that to

with have at as it’s as group pretty there us but X% is digit said, doctors. mix growth many our a have with always other that does then, So, mid-single what cover plus to as those to you that growth. of existing lens solid expand we that which add And that simple give that that though, in, it not are initiatives growth, would to contributor look docs generally, it’s bringing Eric procedures is so the to both what the to robotics leave even existing we is

that is never facilities. our we new brand literally So when doctors just have talk used about that that

helpful. level increase line think of that that am is the super is share visibility No. not punch around into That sure its question could Idaho just sustaining contribution last our year. makes should I that that growth. maybe Anything are the sense. what for My facility of there this was you simply That I would be expectations an performance and it update is, around Falls. the

Whit I take can I Yeah. Sure, can, that.

from let off, below was Idaho of our put facility just Falls above all talked contribution a past the those and the you of the earnings that we remind the quarter up it time. revenue moved as its have existence as second period were it first about of when line for when me turned for, we line year, So through and included of it kind line the the in numbers reflected profitable for in this above

business that we system anymore part that that overall the kind have in seen It there, seen because does is growth Idaho disclosing can but year we part the trajectory now not the typical you have Market, first of continued. in which which of is Falls have of enjoy portfolio. of Community growth the across are We that in does, kind has that the assume the that up of the rest we the

still the we with which to $XX that fair we million. feel long-term it’s Hospital. that confident trajectory And continue going point And Community we get I our the there, grow. to for being as approximately being, revenue Falls would agreement, would, other associated in Idaho until So assume to is is make I there an will the at see included adjusted have at, time to you EBITDA, addition credit in still value

certainly hospital, especially mean, COVID, that of in the love position going a just launching period, when starting Dave This is market that a doing value of a hospital for during time. reaffirm cardiology is was that, the going It is that’s great you middle by marketplace. be in a center to what ED And a trauma hospital player fair said a this over in obviously is amount I We marketplace. I new Yeah. are us. hospital our impacted have to a delayed and everyone was we But would get behind have that get and We just that where Falls. to a it still facility also -- like. our a a is We positioning. a to bit we delayed kind were to but by going distracted. believe be to out ultimately, be. have COVID, it’s great expected Idaho excited license continue we just trying about this things been to And little market fantastic it’s We facility. by be like to delayed trying confidence of people a

I the this, that $XX Can million are losses. this just this contributor said year? you mean there’s add EBITDA credit that expect to sure I I agreement, implies positive that to there of thinking clarification Is a just facility get on the that? backs right? and that make Dave want am about I that be to normally

Yeah. Yeah. is this Wayne. Whit,

Let be positive XXXX. is contributor me will It positive EBITDA. to contributor clarify for that. a a It

out to That’s are $XX credit why additional including million in in we the years. it We are an expecting agreement. the it contribute

Okay.

all top COVID, years EBITDA year. and mid-year expect additive, We the of slowing opened it down as is additional expected, that of because up are we has an of all not going trajectory into year, on and we not to but middle growth would track. for off are EBITDA the projecting positive this out million turned we what started we $XX had this So than it in it’s view we meaning already slower it

you Okay. Thank much. so

Hendrix Thank take the of RBC. Ben you. from the last question Please We go line ahead. with

for Hey. the Thanks, at end. guys, in here squeezing me

opportunity this hoping high little going you more provide of -- timeline? detail as details Just provide could a bit some little fast can Maybe specifically around some information you wave as Is case or has next up and it around as ramp cardio to a that? the the detail the in more any around acuity growth?

seven are world rhythm year I just that don’t are am this expense excited that launch, how expected I Thanks opportunity, believe care this in fast It’s traditional expect nine Ben, being know as cardiac new very drives the question. pace meaning Sure. standpoint, given the programs. service because in for from I sometimes care we seeing, I a we say, of orthopedics, quite coming to management acute much as creation to our programs move I that ACS to that patient certainly we it’s value Eric. although the it surprised the is a line about would

of cardiology, I would about talk I when about kind so evolution. think just It’s an And it.

pacemakers, ACS cardiologists XX% our to interest because efficiently the cardiac again necessarily, facilities cath as built do have rhythm did capability surgeons the there these as growing but lot basic available are But needed basic of and current among procedures. which exposure novo about de are extractions, some is part is facilities, of If orthopedic management, as to procedures outpatient de have have that a, much in as interest not about think what be there’s fluoroscopy part lab think story of you more novo lead we tremendous a definitely cardiac can think of that be them a specialists that’s had facilities. world. of at Certainly, we seeing the

opens that’s We are new the certainly are procedures you up and recruitment When group a space. with pipeline, up show our more come about seeing it we think seeing more of in cardiology can pipeline, physicians, whole on our side. vascular EVP, physician, EP whether our into that

margins a really great be very, when that that think has world We proposition, really you out having is, cardiology. of margins. attractive tend $XX to TAM, a moving attractive value billion in tends our And about that’s care still so about facilities where what’s place of the it next provide nice acute part very it’s to while

it’s so place we grow excited are a And to in.

sure, it want do of pace will job to quality. obviously at makes make do We we a sense. a that We kind on fantastic

very of in like we grew that would period, those things as our mentioned we orthopedics I remarks much the similar lower of one those this but tremendous growth prospects there now, in by there and that you over at interest. going think from growth we into that don’t starting I are prepared to is realm are cardiology. be that out but tremendous growing expect building a are things are the is We number bit that again, the something little all a but end, in be to XXXX. It’s orthopedics. prospects place, XX% there We see started

is bit little heavily in frame, the employed cardiology peaks started, a time specialty. when a first different Now this

And so years. but They not three to are happily tend certain heavily in markets, employed. those be contracts employed, necessarily

And and one and for making of the leaders value in bunch some so helping opportunity of creating a we prove for and healthcare that get system. we be case make happen to disruption, excited transition as the out the up, these see especially of are do centers

that the among I outpatient any we taking to list. just you on of that. because color. only taking just the inpatient Thank It’s a And adding of vacillation CMS of names kind growth of for there regulatory ask have off is finally, risk from or great and seen perspective? Thanks. names kind

Yeah.

question. the So appreciate

years and without or is a argument I don’t ago on procedures is interventional a bit have that doing this made XX I PCIs know. cardiology little cardiology. It’s lot, baseline which of a backup. this just stenting I So XX hospitals open began heart years

putting up XX of just of period often the of hours. is in home it XX it this within go years so took procedures. for to a I reality these Today, And or XX with. a efficacy think lot perspective, now time. CMS a of patients these lot they comfortable have The long of, There’s get been data backing

off say, before And net-net and that the balance. very, procedures the should our was list I or only took put actually so about as positive I very us they they inpatient on, have with a thoughtful think talked for CMS back on we hospital surgical was

it or, and tremendous data leaving because leaving also backs the it and safety did on two anything the we So and the experience. standpoint very because patient wasn’t were creation hips better procedures knees actually but a deliberate cardiology value one up of, they from many

So we know actually actually they And could I my risk of left there. things looked They we really that is have off, this think This like feel see opinion, that on I those. I in don’t don’t, earlier. years one thoroughly. comfortable the this could They have, at said, with. go

centers far number number side, as of there busy safety That for very commercial cardiology that a side in quite are on a the been commercial a lot cardiac of the compelling there fact, have of In out and efficacy. outpatient patients is years. as

that’s do to We sure we service better all going and are with as to lines. anywhere appropriate we this to want go I the of will one than make But our make don’t going as good sure no, of way. all the other that’s see else, through I care provide or clearly don’t. we checkmarks what back

Thank you.

Thank you.

Hello.

Ladies sir. and gentlemen -- yes,

place as our continue each of incredibly our day most their are we make to say chance and thousands XX,XXX faith their in I take over Partners and and Yes. physician energized are in life I mission a humbled difference our year Surgery company I to X,XXX want often so through lives privileged sure, and our you each quality to and I to trust to want for partners over to this over the positive many patients, enhance communities, lead colleagues to I’d XXX,XXX work conclude, seriously, be a by of take do as thank on today, to contributions. patient us what physicians in many make We patients each collectively serves of vulnerable we appreciate day. everyone’s and and people’s questions truly patients we the just say deliver partnership. to colleagues opportunity moments.

the is stakeholders. company of challenges creating the are significant our of to health for of part all clearly am many solution nation’s Our we proud the our and very value facing I system,

the heading through of it and as be the we that operating of period where preferred time very a more our As about success, are a across partner team couldn’t managed daily proud more that space for facilities of have physicians, partners been a short difficult of US contributions company. is surgical the excited and be they very, colleagues, enable couldn’t how our and what’s I all

so thank for So much time you and questions comments. concludes your today. That our

very conference. gentlemen, Thank concludes you sir. and today’s much, Ladies that

You your at Thank may this lines disconnect for you your time. participation.