SEC Filings

AMSURG CORP filed this Form 10-12G/A on 05/21/1997
Entire Document
<PAGE>   42
     The two physician group practices are also owned through limited
partnerships in which AmSurg is the general partner and owns a majority
interest. The other partner in each partnership is an entity owned by the
principal physicians who provide professional medical services to patients of
the practice. All third party payor contracts under which the two physician
group practices provide professional services are entered into by the group
practice entity in which AmSurg is the general partner and owns a majority
     The start-up specialty physician networks are owned through limited
partnerships and limited liability companies. AmSurg owns a majority interest in
these entities, and the other partners are individual physicians who will
provide the medical services to the patient population covered by the contracts
the network will seek to enter into with managed care payors. It is not expected
that the specialty physician networks in themselves will be a significant source
of income for AmSurg. These networks were and will be formed primarily as a
contracting vehicle to generate revenues for AmSurg's practice-based surgery
centers and physician practices. These networks have not yet generated any
     AmSurg's sources of revenues are set forth in the table below. The
facilities fees and fees for physician services received by AmSurg surgery
centers and physician practices are generally paid through third party
reimbursement programs, including governmental and private insurance programs.
AmSurg derived approximately 39%, 37% and 36% of its revenues in the year ended
December 31, 1994, 1995 and 1996, respectively, and 36% and 34% in the three
month period ended March 31, 1996 and 1997, respectively, from governmental
healthcare programs including Medicare and Medicaid.

                                                       PERCENTAGE OF TOTAL REVENUES
                                               YEAR ENDED DECEMBER 31,
                                               -----------------------    THREE MONTHS ENDED
SOURCE OF REVENUES                             1994     1995     1996       MARCH 31, 1997
- ------------------                             -----    -----    -----    ------------------
<S>                                            <C>      <C>      <C>      <C>
Surgery center...............................    97%      96%      83%            80%
Physician practice...........................    --       --       15             17
Management fee...............................     1        2        1              2
Interest and other...........................     2        2        1              1
                                                ---      ---      ---            ---
          Total..............................   100%     100%     100%           100%
                                                ===      ===      ===            ===

     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 AmSurg's relationships with specialty physician practices in the surgery
centers' markets, will provide AmSurg with other opportunities for growth from
specialty network development that if appropriate 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.
  Three Month Period ended March 31, 1997 Compared to Three Month Period ended
March 31, 1996
     Revenues were $12,610,000 for the three month period ended March 31, 1997,
an increase of $5,441,000, or 76%, over revenues for the comparable period in
1996. The increase resulted primarily from the growth in the number of surgery
centers in operation, the acquisition of a majority interest in a urology
physician practice on January 1, 1997 and an increase of 6% in same-center
revenues at the 18 centers in operation since January 1, 1996. AmSurg
anticipates further revenue growth during the remainder of 1997 as a result of
additional start-up and acquisition centers placed in operation and from
same-center revenue growth. See "BUSINESS OF AMSURG -- Revenues."
     Salaries and benefits expense increased by $1,725,000, or 77%, while other
operating expenses increased by $2,197,000, or 97%, for the three month period
ended March 31, 1997 from the comparable period in 1996. These increases
resulted from additional centers in operation, the acquisition of the interest
in the urology physician practice, and an increase in corporate staff primarily
to support growth in the number of centers in operation and anticipated future
growth. Salaries and benefits expense and other operating expenses represented
in the aggregate approximately 67% of revenues for the three month period ended
March 31, 1997 as compared to approximately 63% of revenues for the comparable
period in 1996. The 4% increase is due