SEC Filings

10-12G/A
AMSURG CORP filed this Form 10-12G/A on 11/03/1997
Entire Document
 
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SURGERY CENTER OPERATIONS
    
 
   
     Each AmSurg facility is generally designed, built, staffed and equipped to
meet the specific needs of a single specialty physician practice group. AmSurg's
typical ambulatory surgery center averages 3,000 square feet and is located
adjacent to or in the immediate vicinity of the specialty physicians' offices.
Each center developed by AmSurg typically has two to four operating or procedure
rooms with areas for reception, preparation, recovery and administration. Each
surgery center is developed to perform an average of 2,500 procedures per year.
As of September 30, 1997, 27 of the AmSurg centers in operation performed
gastrointestinal endoscopy procedures, five centers performed ophthalmology
procedures, one center performed orthopaedic procedures, one center performed
otolaryngology procedures, and one center performed ophthalmology, urology,
general surgery and otolaryngology procedures. The procedures performed at the
AmSurg centers generally do not require an extended recovery period following
the procedures. AmSurg centers are typically staffed with three to five clinical
professionals and administrative personnel who are shared with the physician
practice group. The clinical staff includes nurses and surgical technicians.
    
 
     The types of procedures performed at each center depend on the specialty of
the practicing physicians. The typical procedures performed or to be performed
most commonly at AmSurg centers in operation or under development within each
specialty are:
 
     - Gastroenterology -- colonoscopy and endoscopy procedures
     - Ophthalmology -- cataracts and retinal laser surgery
     - Orthopaedics -- knee arthroscopy and carpal tunnel repair
     - Urology -- cystoscopy and biopsy
     - Otolaryngology -- myringotomy and tonsillectomy
 
     AmSurg markets its surgery centers and networks directly to third-party
payors, including HMOs, PPOs, other managed care organizations and employers.
Payor-group marketing activities conducted by AmSurg's management and center
administrators emphasize the high quality of care, cost advantages and
convenience of AmSurg's surgery centers and are focused on making each center an
approved provider under local managed care plans. In addition, AmSurg is
pursuing relationships with selected physician groups in its markets in order to
market a comprehensive specialty physician network that includes its surgery
centers to managed care payors.
 
SPECIALTY PHYSICIAN NETWORKS AND PRACTICES
 
     Provider networks are primarily oriented to local markets. Physician groups
may be members of several networks in a locale. Most networks are either
multi-specialty or primary care based. AmSurg believes that its single specialty
networks, designed around the ambulatory surgery centers and designed to match
the membership base geography of the managed care payors, will be a more
competitive model than networks that do not have those advantages. AmSurg also
has the advantage of being introduced to prospective network members by its
existing practice partners who have already had a positive experience working
with AmSurg in joint ownership of the surgery centers. Pursuant to agreements
with the network, the physicians in these networks also will have the
opportunity to perform their surgical procedures in AmSurg's surgery centers or
develop additional centers with AmSurg as needed. Following the establishment of
a network, AmSurg will provide management services and marketing services to the
network to secure patient service contracts with managed care payors. Fees paid
by these networks to AmSurg are nominal and generally are intended to cover
AmSurg's cost in providing such services.
 
   
     AmSurg believes that the specialty physician networks with practice-based
surgery centers are attractive to managed care organizations because of the
geographic coverage of the network, the lower costs associated with treatment,
the availability of the complete delivery system for a specific specialty and
high levels of patient satisfaction. As a result, AmSurg believes the
development of such networks will position AmSurg to capture an increased volume
of managed care contracts, including capitated contracts, and will increase the
market share and profitability of the AmSurg surgery centers and the practices.
    
 
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