Surgery Partners : 39th Annual J.P, Morgan HealthCare Conference Presentation

Surgery Partners, Inc.

Equities

SGRY

US86881A1007

Healthcare Facilities & Services

Company Profile

Analysts' Consensus

Latest news about Surgery Partners, Inc.

Chart Surgery Partners, Inc.

Income Statement Evolution

Ratings for Surgery Partners, Inc.

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Hospitals, Clinics & Primary Care Services

Market Closed - Nasdaq Other stock markets 21:00:00 15/07/2024 BST			5-day change	1st Jan Change
25.74 ^USD	-4.21%		+11.53%	-19.54%

07-01	Surgery Partners, Inc.(NasdaqGS:SGRY) dropped from Russell 3000 Growth Index	CI
07-01	Surgery Partners, Inc.(NasdaqGS:SGRY) dropped from Russell 2000 Growth Index	CI

January 14, 2021 at 06:20 pm

39th Annual J.P. Morgan Healthcare Conference

Legal Disclaimer

Forward-Looking Statements

Statements contained in this presentation, including the question and answer portion of the presentation, other than statements of historical fact, are forward-looking statements.

In some cases, you can identify forw ard-looking statements by terms such as "may," "w ill," "should," "could," "would," "expects," "plans," "anticipates," "believes," "estimates,"

"projects," "predicts," "potential," or the negative of those terms, and similar expressions and comparable terminology intended to identify forward-looking statements. These forward-looking statements include, w ithout limitation, statements regarding the anticipated timing and strength of the opportunities available to Surgery Partners, Inc. and its subsidiaries (the "Company"), as well as the future financial position of the Company, including financial targets, business strategy, plans and objectives for future operations and future operating results and cash flows. These statements are subject to risks and uncertainties, including, without limitation: the duration and severity of the COVID-19 outbreak in the United States and the regions in which we operate; the impact to the state and local economies of prolonged restrictions as a result of the pandemic generally; our ability to respond nimbly to challenging economic conditions; the unpredictability of our case v olume both in the current environment and if and w hen restrictions are eased; our ability to preserve or raise sufficient funds to continue operations throughout this period of uncertainty; the impact of our cost-cutting measures on our future performance; our ability to cause distributions from our subsidiaries; the responsiveness of our payors, including Medicaid and Medicare, to the challenging operating conditions, including their willingness and ability to continue paying in a timely manner and to advance payments in a timely manner, if at all; the impact of COVID-19 related stimulus programs, including the CARES Act, and uncertainty in how these programs may be administered, monitored and modified in the future; our ability to execute on our operational and strategic initiativ es; the timing and impact of our portfolio optimization efforts; our ability to continue to improve same-facility volume and revenue growth on the timeline anticipated, if at all; our ability to successfully integrate acquisitions; the anticipated impact and timing of our ongoing efficiency efforts, as well as our ongoing procurement and revenue cycle efforts; the impact of adverse weather conditions and other events outside of our control; and the risks and uncertainties set forth under the heading "Risk Factors" in our 2019 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, and discussed from time to time in our reports filed with the Securities and Exchange Commission (the "SEC"). You should read the Company's annual report and all other filings w ith the SEC, av ailable at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements contained in this presentation speak only as of the date of the presentation, and the Company undertakes no obligation to update or revise any forward-looking statements for any reason, except as required by law. The business of the Company is subject to substantial risks and uncertainties, including those referenced above. I nvestors, potential investors, and others should give careful consideration to these risks and uncertainties and should not place considerable reliance on the forward-looking statements contained in this presentation.

Data and Information Contained in this Presentation

This presentation also contains market research, estimates and forecasts, which are inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Certain data in this presentation was obtained from v arious external sources, and neither the Company nor its affiliates, advisers or representatives has verified such data with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives makes any representations as to the accuracy or completeness of that data or has any obligation to update such data after the date of this presentation. Such data involves risks and uncertainties and is subject to change based on v arious factors. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of such owners.

Non-GAAP Financial Measures

This presentation contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance w ith GAAP in the statements of income, balance sheets or statements of cash flow of the company. We present non-GAAP financial measures when we believe that the additional information is useful and meaningful to inv estors. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Reconciliations of these non-GAAP measures are included in our filings w ith the SEC and slides 49 and 50.

Agenda

Who We Are

What Makes Us Unique

How We Drive Shareholder Value

Who We Are

Section 1

1 Who We Are

Our Core Values are Foundational to Who We Are


PATIENTS		PROVIDERS

Act with integrity and transparency
Be accountable
Drive clinical and service excellence
Promote a culture of diversity and inclusion

EMPLOYEES		PAYORS

Demonstrate compassion and kindness

Set and exceed expectations

Each quadrant represents a Surgery Partners stakeholder

Enhancing patient quality of life through partnership

1 Who We Are

We are a Business Built Over the Course of 20+ Years…

Initial Public

Offering

Transformational

Journey

1996

Formation of Symbion

Healthcare

1 Who We Are

Resulting in the Leading Independent Surgical Facility
Operator

30 States	~$1.9 Billion	10%+ Adjusted EBITDA
Adjusted Revenues(1)	Growth Target (2)

116 Ambulatory Surgery Centers

17 Short-Stay

Surgical Hospitals

4,000

Affiliated

Physicians

600,000+

Annual Patients

	(1) 2019 FY adjusted revenues of $1,857M, see page 50 for reconciliation to GAAP Rev enues
	(2) See page 49 for reconciliation to Adjusted EBITDA
© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Q3 2020 SEC reported ASC count of 110 based on Tax Identification Number
7

1 Who We Are

We Have a Diversified Mix, Focused on High Value-Add Specialties, Supported by an Aging Population

Surgery Partners' Case Mix

Other(2)Musculoskeletal(1)

18%

38%

GI 19%

25%

Ophthalmology

✓

Strength with high acuity patients

Leading musculoskeletal platform

Expansive network of surgical capabilities

Leading trend to lower cost setting

Over 50% of Net Revenue From Musculoskeletal Procedures

(1) Includes pain management.

© 2021 Surgery Partners - Confidential & Proprietary Information	(2) Includes cardiology, ENT, general surgery, plastic surgery, and other.
Note: Case mix is based on Nov ember 2020 YTD	8

1 Who We Are

And a Strong, Vertically Integrated Management Team

Wayne DeVeydt

Execut ive Chairman of the Board

27 Years Healthcare Experience

03 Years with Surgery Partners

Jennifer Baldock

EVP & Chief Administrative Officer

24 Years Healthcare Experience

11 Years with Surgery Partners

George Goodwin

American Group President

33 Years Healthcare Experience

22 Years with Surgery Partners

Eric Evans

Chief Execut ive Officer

15 Years Healthcare Experience

02 Years with Surgery Partners

Patricia Hannon

Chief Clinical Officer - Nat ional

35 Years Healthcare Experience

1 Year with Surgery Partners

Brad Owens

Nat ional Group President

26 Years Healthcare Experience

02 Years with Surgery Partners

Tom Cowhey

EVP & Chief Financial Officer

18 Years Healthcare Experience

03 Years with Surgery Partners

Laura Brocklehurst

SVP & Chief Human Resources Officer

21 Years Experience

02 Years with Surgery Partners

Tony Taparo

Chief Growt h Officer

32 Years Healthcare Experience

24 Years with Surgery Partners

Veteran management team, averaging over 25 years of experience

1 Who We Are

That has Built a Solid Foundation to Capture Growth…

Where We Were		Where We Are

Solid, but un-pruned assets

Great platform, but fragmented

Lack of strategic clarity

FROM: A collection of great assets,

but under-managed…

Streamlined, surgical facility assets

Holistic infrastructure

Focused management and vision

TO: … A scalable platform with clear

strategic direction and purpose

1 Who We Are

… Of the Over $150B Total Addressable Market (TAM)

Same-store volume growth

Expansion programs

Physician recruitment in

targeted specialties

Case shift in core specialties like Orthopedics, Spine & Cardiology

Idaho Falls Community

Hospital

Investment in innovative

technologies for service line

expansion

Surgical cases moving to	Consolidation of a fragmented
outpatient setting - $60B+	market through capital
opportunity	deployment

Several near and long-term catalysts to capture this opportunity

© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Management's estimate of total addressable market consists of $55B+ HOPD surgical market,
$35B+ ASC market, and $60B of inpatient surgical cases with potential to move to outpatient setting.	11

What Makes Us Unique

Section 2

2 What Makes Us Unique

What Makes Us Unique

Uniquely positioned due to our focus on high growth specialties

Supported by our superior clinical quality and customer experience

Only independent surgical facility operator of national size and scale

Focused on consolidating an under-valued and fragmented industry with our distinctive scalable platform driving a more efficient and effective operation

Trusted partner of choice

2 What Makes Us Unique

What Makes Us Unique

Uniquely positioned due to our focus on high growth specialties

Supported by our superior clinical quality and customer experience

Only independent surgical facility operator of national size and scale

Focused on consolidating an under-valued and fragmented industry with our distinctive scalable platform driving a more efficient and effective operation

Trusted partner of choice

2 What Makes Us Unique

Well Positioned to Capture $90B+ Existing Outpatient Surgical Market and ~$60B of Cases Migrating to Outpatient

	Annual Revenue (US) Annual Volume Growth

	$500B+	-2%
Inpatient	$230B surgery

$470B+	2%
$55B+ surgery

HOPD

$35B+ surgery

ASC

$550B+

Office

$100B+

Home

Source: Bain & Co, McKinsey, Advisory Board, Sg2, AMA, Av anza, OECD, CMS, Management estimates

~$60B Incremental Shift of

Inpatient Surgical Cases

to the Outpatient Setting

2 What Makes Us Unique

Musculoskeletal and Cardio Procedures Make Up 60%+ of Inpatient to Outpatient Opportunity

Inpatient Surgical Procedures with

Potential to Shift to Outpatient Setting

Surgery Partners'

Clinical and

Operations platform well-positioned to accommodate shift

© 2021 Surgery Partners - Confidential & Proprietary Information	Source: Bain & Co
Note: Numbers may not sum due to rounding	16

2 What Makes Us Unique

We Have an Increasing Opportunity With the Highest Acuity

Specialties…

Case Volume by Specialty

+3x case growth over 8 years

Net Revenue CAGR of +30% from 2012 to 2019
Case mix aligned with higher acuity

			172,902
		115,671
80,712		88,761
	78,136

			52,838
15,051	14,090
Other(1)	GI	Ophthalmology	MSK

2012 Nov '20 TTM

© 2021 Surgery Partners - Confidential & Proprietary Information	(1) Includes Cardiology, ENT, General Surgery, Plastic Surgery and Other	17

2 What Makes Us Unique

Which Are Projected to Grow at a Disproportionately
Higher Rate

Migration of Orthopedic, Spine and Cardio procedures will fuel rapid ASC growth

Percentage of procedures performed in ASCs

80%
70%					68%		66%

						58%	61%
60%
					52%
50%
					44%
40%
	33%		30%

30%
20%
10%		7%	10%
10%
4%

0%
Cardiology			Spine		Orthopedics		Other
			2015	2018	mid-2020s

© 2021 Surgery Partners - Confidential & Proprietary Information	Source: Bain & Co
18

2 What Makes Us Unique

Leading Musculoskeletal & Cardio Platform

Musculoskeletal

Cardio

$3 billion	9%+
Annual savings by shifting	Surgery Partners' historic
50% of joint cases to ASCs(1)	orthopedic case growth
11	80%+
Robots added in 2020,	Surgery Partners' facilities
bringing total to 30	perform MSK procedures

17	6
Cardiac catherization	PCI procedures
procedures approved in 2019	approved in 2020
6%+	60%+
Surgery Partners' historic	Surgery Partners' facilities
cardio case growth	with potential for Cardio

© 2021 Surgery Partners - Confidential & Proprietary Information	(1) "New Research Highlights the Safety and Cost Savings Associated with Ambulatory Surgery Centers," UNH Research, 2020.	19

2 What Makes Us Unique

Considerable Growth Ahead for Joint Replacements…

Inpatient and Outpatient Hip & Knee Replacement Forecast

Volume (millions)

2.0						57%
1.5					48%
			40%
	15%		31%
	23%
1.0	15%

0.5	85%	77%	69%	60%	52%	43%

-
	2018A	2020P	2022P	2024P	2026P	2028P
			Inpatient	Outpatient

CAGR '18 - '28P

Outpatient = 20%

Inpatient = -0.7%

Outpatient volume expected to increase over 1 million casesand to

comprise over 50%of total knee & hip volume

© 2021 Surgery Partners - Confidential & Proprietary Information	Source: "Ev olution of Total Joint Replacements: From Hospital to Surgery Center", Sg2, 2019	20

2 What Makes Us Unique

And Medicare Continues to Advantage Outpatient
Surgical Facilities

Recent CMS Changes

Approved Total Joint Replacements

2020- Total Knee Arthroplasty approved for ASCs
2021- Total Hip Arthroplasty approved for ASCs

Eliminated Inpatient-Only List

~300 musculoskeletal procedures will be removed from the inpatient-only list over a three-year period, including 266 codes for 2021
~1,400 additional procedures are expected to be removed from the inpatient-only list over a three-year period

2.4% headline ASC increase, 2.9% SGRY mix-adjusted rate increase in 2021

20% cost savings for hip

replacements(1)

17% cost savings for knee

replacements(2)

500,000 fewer overnight

stays for patients(3)

$3B annual savings(3)

(1) Savings compares: Commercial Hip - $34.3K cost inpatient vs. $27.6K cost in ASC; Medicare Hip - $13.8K cost inpatient vs. $11K cost in ASC.

(2) Savings compares: Commercial Knee - $34.3K cost inpatient vs. $28.6K cost in ASC; Medicare Knee - $14.9K cost inpatient vs. $12.4K cost in ASC.

(3) Assumes half routine joint replacements performed in hospitals on an inpatient basis moved to ASCs.

© 2021 Surgery Partners - Confidential & Proprietary Information	Sources: "New Research Highlights the Safety and Cost Savings Associated with Ambulatory Surgery Centers," UNH Research, 2020.
21

2 What Makes Us Unique

Differentiated and Highly Capital Efficient Approach to Growing and Enhancing Orthopedics & Cardiology…

7. Supply chain initiatives

6. Payer strategies

5. In-Market and New Market Transactions

1. Demographic and site of service trends leading to future growth

2. Physician Recruitment

3. Add orthopedics and cardiology as a new service line

4. Expansion of orthopedic / cardiology service line (e.g., total joint program)

2 What Makes Us Unique

…. Leading to 9%+ Orthopedic Service Line Volume Growth

90 Locations

109k Orthopedic Procedures

650+ Orthopedic Physicians

97%+ Joint Case Growth at ASCs(1)

Orthopedic Case Volume

© 2021 Surgery Partners - Confidential & Proprietary Information	(1) Nov ember YTD '20 compared to Nov ember YTD '19
23

2 What Makes Us Unique

Musculoskeletal has Proven Most Resilient Through COVID Disruption

Year-over-year surgical cases by key service lines

(1)

© 2021 Surgery Partners - Confidential & Proprietary Information	(1) Represents March and April 2020
Note: Not days adjusted	24

2 What Makes Us Unique

What Makes Us Unique

Uniquely positioned due to our focus on high growth specialties

Supported by our superior clinical quality and customer experience

Only independent surgical facility operator of national size and scale

Focused on consolidating an under-valued and fragmented industry with our distinctive scalable platform driving a more efficient and effective operation

Trusted partner of choice

2 What Makes Us Unique

We Hold Ourselves to the Highest Standards…

Average Deficiencies per Survey(1)		Average Deficiencies per Survey(2)

	25% Fewer
10.00	Deficiencies	40.00
		8.4
		30.00
	6.3
5.00		20.00
		10.00
0.00		0.00
	Surgery Partners	All Other
	ASCs

48% Fewer
Deficiencies
	33.7
17.6
Surgery Partners	All Other

Surgical Hospitals

© 2021 Surgery Partners - Confidential & Proprietary Information	(1) For ASCs - 2019 Health & Life Safety Tags
(2) For Hospitals - 2018 The Joint Commission surv eys	26

2 What Makes Us Unique

And Regularly Report and Benchmark Our Performance to Emphasize our Culture of Safety…

Sample Metrics		Sample Reporting

Patient burns
Wrong site procedures
Surgical site infections rate

Patient falls
Hospital transfers
ER visits within 24 hours of discharge

Hospital admissions ✓ Normothermia rate

within 24 hours of	upon arrival to the
discharge	PACU
✓ Unplanned	✓ Toxic anterior
anterior vitrectomy	segment syndrome
rate	(TASS) rate

2 What Makes Us Unique

… With A Proven Record of Exceptional Clinical Care…

2 What Makes Us Unique

And Clinical Efficacy that Results in a Better Patient
Experience

Nationwide Hospitals		Surgery Partners(1)

Best in Class Patient Experience

	(1) Includes hospitals that were owned / operated by Surgery Partners FY2019
© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Based on CMS star rating score	29

2 What Makes Us Unique

We Focus on Patient Experience…

Facility

93		88
Process	94	Financial

Overall

Patient

Experience

94	95
Personal	People

Cleanliness and comfort

Communication on insurance and financial responsibility

Exceptional administrative and clinical staff

Kept informed and procedure explanations

Patient experience and registration workflow

© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Based on patient satisfaction surveys conducted from Dec '19 - May '20	30

2 What Makes Us Unique

Which has Resulted in a Best-in-Class Patient Net Promoter Score

Patient Net Promoter Score

© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Surv ey conducted from Dec '19 - May '20	31

2 What Makes Us Unique

What Makes Us Unique

Uniquely positioned due to our focus on high growth specialties

Supported by our superior clinical quality and customer experience

Only independent surgical facility operator of national size and scale

Focused on consolidating an under-valued and fragmented industry with our distinctive scalable platform driving a more efficient and effective operation

Trusted partner of choice

2 What Makes Us Unique

Surgery Partners is the Only Pure-Play of National Size and Scale

Surgical Facility

Revenue(1)

Revenue		% of Total

$1.9B 95%+

$1.3B ~15%

$2.5B ~1%

NA NA

$2.6B ~15%

Parent

Company

Public

Only Pure-Play

Surgery Center

Operator

Priv ate

Div ision of Env ision

Div ision of UHG

Div ision of HCA

Div ision of Tenet

Number of

Surgical

Facilities(2)

133

250+

230+

140+

334

Specialty Focus

MSK, Cardiovascular, & Ophthalmology
Gastrointestinal
MSK & Cardiovascular
NA
MSK

	(1) Surgery Partners data reflects 2019 FY adjusted revenues of $1,857M, see page 50 for reconciliation to GAAP Rev enues, Env ision based on LTM 6/30/2018 data,
	SCA rev enues based on CFO.com article 5/15/2019 and Tenet based on 2019Aresults pro forma for SCD acquisition per 12/10/2020 Investor Presentation.
	(2) Reflects latest av ailable data from company websites; Tenet data is pro forma for SCD acquisition based on 12/10/2020 Inv estor Presentation.
© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Based on most recent publicly available data
Source: Company filings and websites	33

2 What Makes Us Unique

What Makes Us Unique

Uniquely positioned due to our focus on high growth specialties

Supported by our superior clinical quality and customer experience

Only independent surgical facility operator of national size and scale

Focused on consolidating an under-valued and fragmented industry with our distinctive scalable platform driving a more efficient and effective operation

Trusted partner of choice

2 What Makes Us Unique

Well Positioned to Capture Share in a Fragmented Market

Number of ASCs in the U.S.

Total = 5,851 ASCs

Other Multi-site
Operators	Independent Single-site ASCs
(10%)
(36%)

National
Platforms	Hospital Affiliated ASCs
(18%)
(36%)

Chains with	Single facility providers
multiple sites

Number of POHs in U.S.

94%

(6%)

Total Addressable Market: ~$90B+ Current and ~$60B+ Incremental To Come

© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Total number of ASCs reflects only Medicare-certified ASCs. "National Operators" includes SGRY, USPI (pro forma for Dec '20 SCD acquisition), SCA, AmSurg, and HCA
Source: Becker's ASC Rev iew, VMG, Market participant interviews, KaufmanHall, J.P. Morgan, Bain & Company, and management estimates	35

2 What Makes Us Unique

Surgery Partners has Invested in Systems and Processes to Build a Platform Capable of Driving Acquisition-led Growth

Managed Care

• Invested in key talent

• Continuing to enhance our health plan value proposition through higher acuity service line expansions and growing regional presence/depth

Piloting enterprise-wide contract management system

	Revenue Cycle
• Invested in key talent
•	Restructured shared
	service center
•	Migrated 95%+ of facilities
	to unified clearinghouse
•	Investing in denials
	management and
	coding technologies	Data / Analytics

	•	Invested in key talent	•	Migrating disparate
	•	Centralized data warehouse	systems to end-state
				platforms

Supply Chain

Invested in key talent
Migrated to one company-wide GPO
Rationalizing implant vendors to secure best deals
Investing in tools and processes to enhance compliance

Recruiting

Invested in key talent
Invested in data to better understand key physicians in target markets
Launched innovative marketing programs
Selected investments to enhance attractiveness of facilities (e.g., robotics)

2 What Makes Us Unique

We have Re-Focused on Short-Stay Surgical and are Re-Accelerating the Pace of Capital Deployment

Closed or Sold

Acquisitions

Transaction Highlights

• Refocused portfolio on growing short-stay surgical assets

• 7 transactions to enhance presence and footprint in Idaho

• 4 transactions to enhance presence in Southern California market, including

✓ Bakersfield Heart Hospital (Oct 2020)

✓ GI-focused ASC (Dec 2020)

• Average multiple paid of ~7x since 2018

Surgery Partners has deployed ~$300 million of capital since early 2018;

Seeking to deploy an additional $100M+ in 2021

2 What Makes Us Unique

What Makes Us Unique

Uniquely positioned due to our focus on high growth specialties

Supported by our superior clinical quality and customer experience

Only independent surgical facility operator of national size and scale

Focused on consolidating an under-valued and fragmented industry with our distinctive scalable platform driving a more efficient and effective operation

Trusted partner of choice

2 What Makes Us Unique

We Have a Highly Flexible Model…

Multi-Site	Three-Way JVs
Management

	Facility

Facilities

Two-Way JVs

Facility

Services

Health

PayorsSystems

We have a tailored approach to partnership and physician engagement

2 What Makes Us Unique

… Which Results in Highly Satisfied Physician Partners…

Physician Net Promoter Score

© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Surv ey conducted in 2015; 366 respondents.	40

2 What Makes Us Unique

… And Strong Physician Engagement and Retention

BETTER PARTNERS. BETTER CARE.

We are focused on physicians. Through decades of experience, we have observed that an outstanding patient experience begins with an outstanding physician relationship. Everyone wins when physicians have what they need to do their best work and can exercise autonomy within their place of work.

95%+

PARTNER

RETENTION(1)

We proudly boast 95%+ partner retention(1), and the findings from our most recent Net Promoter Score, the national ranking system used to measure satisfaction, nearly max out the upper end of the NPS scale.

© 2021 Surgery Partners - Confidential & Proprietary Information	(1) Physician partner retention based on 2019 data for 105 facility cohort
41

How We Drive Shareholder Value

Section 3

3 How We Drive Shareholder Value

Recognizing the Benefits of Our Transformational Journey

2018

2019 - 2020

2021 - 2024

Foundation of our	Executing on	Reaping the
Transformational Journey	Our Strategy	Benefits

Pruned Asset Base	Invested in Our Surgical Facilities	Top-Line Growth
Recharged Organic Growth	Accelerated Organic Growth	Margin Expansion
Rebuilt M&A Pipeline	Bolstered In-Market Pipeline	Capital Investment Returns
Leveraged Scale	Leveraged Scale

TRANSFORMATION	+	EXECUTION	=	DOUBLE-DIGIT
EBITDA GROWTH

3 How We Drive Shareholder Value

Business Has Proven Resilient Through COVID-19 Disruption

Net Revenue Has Experienced Strong Rebound Since April

Same Facility Net Revenue vs. Prior Year

Same facility net revenue continues to

exceed prior year in 4Q 2020

© 2021 Surgery Partners - Confidential & Proprietary Information	Note: Days Adjusted	44

3 How We Drive Shareholder Value

Reaping the Benefits: Proven Organic Growth Model

Top-line Growth		Margin Expansion		Capital Investment

Volume

Procurement

Acquisitions

Rate	Revenue Cycle	Expansions

Managed Care	Org / Workflow	De Novos
Efficiencies

+4-6% EBITDA p.a.

+3-5% EBITDA p.a.

Sustainable double-digit organic EBITDA growth model

3 How We Drive Shareholder Value

Reaping the Benefits: Sustainable Long-termDouble-Digit AEBITDA Growth

$ in Millions

$420+

~$315

12.5%+

Growth CAGR

2020-2024

2018A 2019A 2020P 2021P 2022P

Near-termMid-term

2023P 2024P Long-term

Return to growth
Standardization
Rationalization

High-end /exceed 4-6%same-store revenues
Managed Care, Revenue Cycle & Procurement opportunities
IFCH achieves profitability

Medicare and Managed Care opportunity continues to drive strong same-store growth
Capital deployment

3 How We Drive Shareholder Value

The Surgery Partners' Advantage

$150B+ Total	Purpose-built, Veteran	Focused on High
Addressable Market	Management Team	Growth Specialties
+		+

Superior Clinical	Independent, Trusted
Quality and Customer	Scalable Platform
Partner of Choice
Experience

+		+

Equating to Near, Mid & Long-termDouble-Digit Growth

Appendix

Reconciliation to Adjusted EBITDA

The following table reconciles Adjusted EBITDA to Income before income taxes, the most directly comparable GAAP financial measure (in millions and unaudited):

EBITDA Adjustments

			2019
Income (loss) before income taxes	$	55
Plus (minus):
Net income attributable to non-controlling interests			(120)
Interest expense, net			179
Depreciation and amortization			77
Equity-based compensation expense			10
Transaction, integration & acquisition costs(1)			36
Gain on disposals and deconsolidations, net			(4)
Loss on litigation settlements & other litigation costs			5
Loss on debt extinguishment			12
Tax receivable agreement expense			2
Impairment charges			8

Adjusted EBITDA	$	259

(1)	This amount includes transaction and integration costs of $19 million, acquisition costs of $3 million
© 2021 Surgery Partners - Confidential & Proprietary Information	and $14 million for start-up costs related to a de nov o surgical hospital.	49

Reconciliation to Adjusted Revenues

The following table reconciles Adjusted Revenues(1) to GAAP Revenues, the most directly comparable GAAP financial measure (in millions and unaudited):

Revenue Adjustments
			2019
Revenues		$	1,831
Plus (minus):
Provision for doubtful accounts		25
Adjusted Revenues	(1)	$	1,857

In accordance with a new accounting standard that was effectiv e prospectively January 1, 2018, we reflected our estimated
prov ision for doubtful accounts net of rev enues rather than as an operating expense, as it had historically been presented. Adjusted Rev enues add back the estimated provision of doubtful accounts. We believe such an adjustment is appropriate, as the new standard did not affect historical results prior to 2018, which impacts historical comparability. Our calculation of adjusted revenues may not be comparable to similarly titled measures reported by other companies.

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Surgery Partners Inc. published this content on 11 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 January 2021 18:19:03 UTC

Surgery Partners, Inc.(NasdaqGS:SGRY) dropped from Russell 3000 Growth Index	06-30	CI
Surgery Partners, Inc.(NasdaqGS:SGRY) dropped from Russell 2000 Growth Index	06-30	CI
Surgery Partners, Inc.(NasdaqGS:SGRY) dropped from Russell 2500 Growth Index	06-30	CI
Surgery Partners, Inc.(NasdaqGS:SGRY) dropped from Russell Small Cap Comp Growth Index	06-30	CI
Surgery Partners, Inc.(NasdaqGS:SGRY) dropped from Russell 3000E Growth Index	06-30	CI
Macquarie Initiates Surgery Partners at Outperform With $31 Price Target	06-28	MT
Sector Update: Health Care Stocks Advance in Late Afternoon Trading	05-07	MT
Surgery Partners Rises after Q1 Adjusted Earnings, Revenue Increase; 2024 Revenue Outlook Boosted	05-07	MT
Surgery Partners Q1 Adjusted Earnings, Revenue Gain; Boosts 2024 Revenue Outlook	05-07	MT
Transcript : Surgery Partners, Inc., Q1 2024 Earnings Call, May 07, 2024	05-07
Earnings Flash (SGRY) SURGERY PARTNERS Reports Q1 EPS $0.10, vs. Street Est of $0.08	05-07	MT
Surgery Partners, Inc. Reports Earnings Results for the First Quarter Ended March 31, 2024	05-07	CI
Surgery Partners, Inc. Raises Earnings Guidance for the Year 2024	05-07	CI
Surgery Partners Unit to Offer $600 Million of Senior Notes	03-26	MT
Surgery Partners Insider Sold Shares Worth $277,633, According to a Recent SEC Filing	03-06	MT
Transcript : Surgery Partners, Inc., Q4 2023 Earnings Call, Feb 26, 2024	02-26
Surgery Partners Q4 Adjusted Earnings, Revenue Climb	02-26	MT
Earnings Flash (SGRY) SURGERY PARTNERS Posts Q4 EPS $0.44, vs. Street Est of $0.38	02-26	MT
Surgery Partners, Inc. Reports Earnings Results for the Fourth Quarter Ended December 31, 2023	02-26	CI
Surgery Partners, Inc. Provides Earnings Guidance for the Year 2024	02-26	CI
Surgery Partners, Inc. Reports Earnings Results for the Full Year Ended December 31, 2023	02-26	CI
North American Morning Briefing : Traders Await -2-	02-26	DJ
Certain Stock Options of Surgery Partners, Inc. are subject to a Lock-Up Agreement Ending on 29-JAN-2024.	01-28	CI
Certain Common Stock of Surgery Partners, Inc. are subject to a Lock-Up Agreement Ending on 29-JAN-2024.	01-28	CI
RBC Raises Price Target on Surgery Partners to $49 From $47, Keeps Outperform Rating	01-24	MT

Duration

Period

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Surgery Partners, Inc. is a healthcare services company. The Company, through its subsidiaries, owns and operates a national network of surgical facilities and ancillary services. Its segments include Surgical Facility Services and Ancillary Services. The Surgical Facility Services segment consists of the operation of ASCs and surgical hospitals and includes its anesthesia services. Its surgical facilities primarily provide non-emergency surgical procedures across many specialties, including, among others, orthopedics and pain management, ophthalmology, gastroenterology and general surgery. The Ancillary Services segment consisted of multi-specialty physician practices, including physician practices owned and operated pursuant to long-term management service agreements. It is focused on surgical services businesses in the United States, with over 180 locations in 33 states, including ambulatory surgery centers, short-stay surgical hospitals, and multi-specialty physician practices.

Sector

Healthcare Facilities & Services

Calendar

29/07/2024 - Q2 2024 Earnings Release (Projected)

Related indices

Russell 2000

More about the company

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Trading Rating

Investor Rating

ESG Refinitiv

C-

More Ratings

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

25.74 USD

Average target price

40.25 USD

Spread / Average Target

+56.37%

Consensus

Estimates Revisions

Company calendar

Formation of

	1st Jan change	Capi.
SURGERY PARTNERS, INC.	-19.54%	3.25B
AIER EYE HOSPITAL GROUP CO., LTD.	-33.75%	13.43B
IHH HEALTHCARE	+5.14%	11.95B
BANGKOK DUSIT MEDICAL SERVICES	-4.50%	11.66B
APOLLO HOSPITALS ENTERPRISE LIMITED	+13.14%	11.08B
ENCOMPASS HEALTH CORPORATION	+28.13%	8.61B
THE ENSIGN GROUP, INC.	+20.47%	7.63B
MOUWASAT MEDICAL SERVICES COMPANY	+7.87%	6.45B
FORTIS HEALTHCARE LIMITED	+16.69%	4.39B
DALLAH HEALTHCARE COMPANY	-8.15%	4.11B

Hospitals, Clinics & Primary Care Services