partners, or if they cannot concur, by a nationally recognized law firm with an
expertise in healthcare law jointly selected by AmSurg and the physician
partners. The interest required to be purchased by AmSurg will not exceed the
minimum interest required as a result of the change in the statute or regulation
causing such prohibition. See "RISK FACTORS -- Relationships with Physician
AmSurg's principal executive offices are located in Nashville, Tennessee
and contain an aggregate of approximately 15,000 square feet of office space,
which AmSurg subleases from AHC pursuant to an agreement that expires in
December 1999. See "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS -- Lease
Arrangement." AmSurg partnerships and limited liability companies generally
lease space for their surgery centers. Twenty-five of the centers and the
physician practices in operation at January 31, 1997 lease space ranging from
1,200 to 7,800 square feet with remaining lease terms ranging from two to
eighteen years. Three centers in operation at January 31, 1997 are located in
buildings owned directly or indirectly by AmSurg.
As of January 31, 1997, AmSurg and its affiliated entities employed 174
persons, 149 of whom were full-time employees and 25 of whom were part-time
employees. Of the above, 44 were employed at AmSurg's headquarters in Nashville,
Tennessee. In addition, approximately 102 employees are leased on a part-time
basis and 135 are leased on a full-time basis from the associated physician
practices. None of these employees is represented by a union. AmSurg believes
its relationship with its employees to be excellent.
LEGAL PROCEEDINGS AND INSURANCE
From time to time, AmSurg may be named a party to legal claims and
proceedings in the ordinary course of business. Management is not aware of any
claims or proceedings against it or its partnerships that might have a material
financial impact on AmSurg.
AmSurg maintains separate medical malpractice insurance through each of its
surgery centers in amounts it deems adequate for its business.