Surgery Partners, Inc. reported significant financial developments in its 10-Q filing for the third quarter of 2024, reflecting both growth in revenues and challenges in profitability. As of September 30, 2024, the company’s total assets increased to $7,534.4 million, up from $6,876.7 million at the end of 2023. Current assets also rose to $1,035.8 million, with cash and cash equivalents reaching $221.8 million, compared to $195.9 million previously. However, long-term debt increased substantially to $3,094.2 million from $2,701.8 million.

For the third quarter of 2024, Surgery Partners reported revenues of $770.4 million, a 14.3% increase from $674.1 million in Q3 2023. This growth was driven by a 4.2% rise in same-facility revenues and a 3.7% increase in same-facility case volumes. Patient service revenues accounted for 97.7% of total revenues, slightly down from 98.2% in the prior year. Despite the revenue growth, operating income fell to $60.9 million from $82.6 million, and net income dropped to $6.4 million from $29.7 million in Q3 2023. The company reported a net loss attributable to Surgery Partners of $(31.7) million, compared to a loss of $(4.9) million in the same quarter last year.

For the first nine months of 2024, total revenues reached $2,249.9 million, up from $2,007.9 million in 2023. However, net income for this period decreased to $59.1 million from $88.6 million, with a net loss attributable to Surgery Partners of $(59.6) million, compared to $(10.9) million in the previous year. The effective tax rate for the nine months ended September 30, 2024, was 18.9%, contrasting with a tax benefit of (7.7)% in 2023.

Strategically, Surgery Partners expanded its portfolio by acquiring a controlling interest in six surgical facilities and several physician practices for $291.2 million during the nine months ended September 30, 2024. This is a significant increase compared to the $23.1 million spent on two facilities and one practice in the same period of 2023. The company also issued $800.0 million in senior unsecured notes to refinance existing debt and support future acquisitions.

Overall, while Surgery Partners experienced revenue growth, it faced challenges in profitability and increased debt levels, reflecting a complex operational landscape.