SEC Filings

10-12G
AMSURG CORP filed this Form 10-12G on 03/11/1997
Entire Document
 
<PAGE>   39
 
   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                              OPERATIONS OF AMSURG
 
OVERVIEW
 
     AmSurg develops, acquires and manages practice-based ambulatory surgery
centers and specialty physician networks in partnership with physician practice
groups through partnerships or limited liability company interests. As of
January 31, 1997, AHC owned 59% of the common stock of AmSurg.
 

     Management's Discussion and Analysis of Financial Condition and Results of
Operations contains forward-looking statements which are based upon current
expectations and involve a number of risks and uncertainties. These statements
which have been included in reliance on the "safe harbor" provisions of the
Private Litigation Reform Act of 1995, may be affected by the risk factors set
forth in this Information Statement and by the important factors, among others,
set forth below, and consequently, actual operations and results may differ
materially from those expressed in these forward-looking statements. The
important factors include: AmSurg's ability to enter into partnership or
operating agreements for new practice-based ambulatory surgery centers and new
specialty physician networks; its ability to contract with managed care payors
for its existing centers and its centers that are currently under development;
its ability to obtain and retain appropriate licensing approvals for its
existing centers and centers currently under development; and its ability to
maintain favorable relations with its physician partners. See "RISK
FACTORS -- Risks Associated with Forward-Looking Statements."
 
     The following table presents the components of changes in the number of
surgery centers in operation and centers under development at the end of fiscal
1994, 1995 and 1996. A center is deemed to be under development when a
partnership or limited liability company has been formed with the physician
group partner to develop the center.
 

<TABLE>
<CAPTION>
                                                                  YEAR ENDED
                                                                 DECEMBER 31,
                                                              ------------------
                                                              1994   1995   1996
                                                              ----   ----   ----
<S>                                                           <C>    <C>    <C>
Centers in operation, beginning of year.....................    6     14     18
New center acquisitions placed in operation.................    3      2      6
New development centers placed in operation.................    5      2      3
                                                               --     --     --
Centers in operation, end of year...........................   14     18     27
                                                               ==     ==     ==
Centers under development, end of year......................    4     13     20
</TABLE>

 
     Twenty-one of the surgery centers in operation as of December 31, 1996
perform gastrointestinal endoscopy procedures; three centers perform eye surgery
procedures; one center performs ear, nose and throat procedures; one center
performs orthopaedic procedures; and one center performs ophthalmology, urology,
general surgery and otolaryngology procedures. In addition, on January 31, 1996,
AmSurg acquired a 70% interest in the assets of a gastroenterology and primary
care physician practice located in Miami, Florida and associated with a surgery
center in which AmSurg already held an ownership interest. While AmSurg
generally owns 51% to 70% of the entities that own the surgery center or
physician group practice, AmSurg's consolidated statements of operations include
100% of the results of operations of the entities, reduced by the minority
partners' share of the net income or loss of the surgery center/practice
entities.
 
     AmSurg intends to expand primarily through the development and acquisition
of additional practice-based ambulatory surgery centers in targeted surgical
specialties. In addition, AmSurg believes that its surgery centers, combined
with its relationships with specialty physician surgical practices in their
markets, will provide AmSurg with other opportunities for growth from surgical
specialty network acquisition and development that may include the acquisition
of specialty physician practices. By using its surgery centers as a base to
develop specialty physician networks that are designed to serve large numbers of
covered lives, AmSurg believes that it will strengthen its market position in
contracting with managed care organizations.
 
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