Surgery Partners, Inc. (NASDAQ:SGRY) Q4 2022 Earnings Call Transcript

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And when you start something that way using data, you actually just get better at it, more refined at it. You start understanding ways to target the market differently in ways to actually have your recruiters target those surgeons that you’re pursuing. The second thing, though, that I think has been a real difference maker for us, is we took some of our ASC leaders. In this case, Tony Taparo, who used to run about half of our ASCs as one of our EVPs over all of them? And we just said, Tony, we actually want to make sure too, that when we recruit and we pursue that these surgeons understand that they’re actually interacting with somebody who actually knows how a facility runs, who actually has been part of it for over two decades, and is really integrated into the business.

And then the last thing I would tell you is we have really shifted to onboarding efforts and then really satisfaction efforts. So it’s not just about how do we recruit the surgeon, how do we get them their scheduling, how do we get them on their block time. But Eric, when he came in really added a whole new level of kind of what I’ll call creating the back-end aspects of this, which is ensuring that the provider satisfaction is high. And when it’s not high, why isn’t it? And what can we do to impact that. And so I think what you’re also seeing in our strong organic growth is the fact that we should talk about the leaky tub, right? And that every year, we’re recruiting enough docs just to replenish those that were leaving us. And those that are leaving us has diminished meaningfully in the last three to four years.

And of course, what we’re recruiting has grown exponentially during that period. And so it’s simple though it’s basic blocking and tackling. It’s data-driven execution that we look at every week. Every week, not once a month, once a quarter, but every week. And it’s having teams aligned with what those recruitment goals are and how they’re compensated.

Brian Tanquilut: I appreciate that, Wayne. And yes, I hope to see us too in Nashville. I guess my follow-up, Eric, as I think about your excitement for cardio and we obviously share the same optimism about the cardio opportunity. But as I think about the catalyst for that to gain traction, it’s just one of those things kind of like with Ortho, we need to see CMS approval? Or is there any interest that you’re seeing now from the Medicare Advantage you guys saw the commercial payers to start reimbursing credits and get that ball rolling?

Eric Evans: Yes, it’s a great question. I would say actually, CMS has approved the largest volume procedures; the PCI is the thing that I think should move. I think the kind of the slow pace here at the beginning is clearly tied to this is a very, very highly employed specialty. Not happily employed, but highly employed by health systems. There’s a lot of interest from cardiologists. And what we’re seeing initially is we started, I think it was five new cardiac rhythm management programs in our ASCs this year. So cardiologists coming over or checking us out, maybe even investing, starting to bring over devices. But the really big wave here, Brian is as doctors figure out what they can have ownership of it, what they can move safely and at a really good value for their patients to the space.

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