Surgical Care Affiliates 3Q revenue increases 25 percent

DEERFIELD - Surgical Care Affiliates said operating revenue for the third quarter of 2016 increased 25 percent, boosted by new acquisitions by provider of surgical services.

SCA reported net operating revenue of $322.8 million, an increase of 25.2 percent over the prior year third quarter. Net income attributable to SCA was $13.3 million, down 88.8 percent from $118.6 million in the third quarter of 2015 primarily attributed to a one-time, noncash tax valuation allowance release which totaled $106.1 million. Excluding the release, net income would have grown 6.3 percent, the company said.

"We are pleased with our clinical, strategic and financial performance. Patient care is our first priority, and our success is driven by our outstanding physicians and teammates, who continue to achieve strong clinical quality and patient satisfaction results," said Andrew Hayek, Chairman and Chief Executive Officer. "From a strategic standpoint, we continue to partner with health plans, medical groups and health systems, and our development pipeline remains strong. We are grateful to our physicians and teammates across the country who are dedicated to outstanding patient care and to building our SCA community."

The Company acquired six new facilities in the quarter, four of which are consolidated and two of which are nonconsolidated. In addition, the company closed one consolidated facility and sold one equity method facility. Also, during the same period, seven of the Company's existing facilities converted from nonconsolidated to consolidated. The conversions did not impact total facility count. Since the end of the third quarter, the company acquired one new consolidated facility that was absorbed into an existing facility. SCA's total facility count as of November 1, 2016 is 205.