• Government
• Profession
• Business
• Opinion
• Health

• Health reform
• H1N1
• P4P
• EMRs
• Medicare
• Liability
• AMA House
• » More

• Book Excerpt
• Business Pitch
• Meetings
• » More

• Contract Language
• Ethics Forum
• In the Courts
• Practice Management
• Technically Speaking
• » More

• Issue dates
• Regions
• Health plans
• Sections
• News briefs
• Columns
• Editorials
• Letters
• Writers
• Other years

• Search tips
• E-mail alert
• Radio
• RSS
• Mobile
• Subscribe
• Institutions
• Staff directory
• Advertising
• Permissions
• Reprints
• News media
• Site guide
• Useful links
• About
• Premium
• Contact

Surgery center firm completes stock offering

AmSurg Corp. continues to grow by buying more centers and boosting the number of surgeries.

By Cheryl Jackson, amednews staff. May 7, 2001.

• PRINT|
• E-MAIL|
• RESPOND|
• REPRINTS|
• SHARE

AmSurg Corp., which joins doctors in operating single-specialty surgery facilities, has completed a stock offering that netted the company $66.3 million.

The Nashville, Tenn.-based firm sold its new shares April 19, while announcing greater revenue growth and earnings in line with Wall Street expectations. But its stock sold for less than its 52-week high of $25, and the company's share price has fluctuated since the offering was completed.

AmSurg President and Chief Executive Ken McDonald said he was sure his company's 4-million-share offering would be well-received, despite recent stock market downturns. The new shares sold for about $18 each, and proceeds were to be used to pay debt.

AmSurg operates single-specialty surgery facilities with doctors who are investors and who often work from offices attached to the centers. It grew from 64 centers last year to 84 in 2001.

Because the surgical centers concentrate on particular procedures, outcomes are better and fees are lower than at hospitals, McDonald said.

The 9-year-old firm is enjoying a field fairly free of competition, analysts say. In the time that practice management companies sprang up and imploded, AmSurg has seen record growth.

Revenues last year rose 41% to $143.3 million. First quarter 2001 revenues were up 43% to $45.14 million from $31.63 million for the same period in 2000. Earnings per share were up 21%, to 17 cents. [...]