Increases 2009 Guidance for Net Earnings from Continuing Operations to Range of $1.69 to $1.71 Per Diluted Share

Christopher A. Holden, President and Chief Executive Officer of AmSurg Corp. (NASDAQ: AMSG), today announced financial results for the second quarter ended June 30, 2009. Revenues increased 12% to $168,844,000 for the quarter from $150,722,000 for the second quarter of 2008. Net earnings from continuing operations attributable to AmSurg common shareholders increased 11% to $13,798,000 from $12,444,000. Net earnings from continuing operations per diluted share attributable to AmSurg common shareholders increased 15% to $0.45 for the second quarter of 2009 from $0.39 for the second quarter of 2008. As expected, the results for the second quarter of 2009 included an incremental negative impact of $0.02 per diluted share from the effect of the Medicare rule revising the payment system for ASCs, which was effective January 1, 2008. This negative impact was largely offset by the Company’s stock repurchases in the fourth quarter of 2008 and the first quarter of 2009.

Revenues for the first six months of 2009 increased 12% to $332,268,000 from $296,301,000 for the comparable period in 2008. Net earnings from continuing operations attributable to AmSurg common shareholders increased 10% to $26,411,000 for the first half of 2009 from $24,066,000 for the first six months of 2008 and 13% on a per share basis to $0.85 from $0.75. The results for the first six months of 2009 included an incremental negative impact of $0.04 per diluted share from the effect of the Medicare rule revising the payment system for ASCs. This negative impact was largely offset by the Company’s stock repurchases in the fourth quarter of 2008 and the first quarter of 2009.

“AmSurg exceeded its guidance for second-quarter earnings per share of $0.40 to $0.42, primarily on the strength of a 12% increase in procedure volume for the quarter compared with the second quarter of 2008,” said Mr. Holden. “The second quarter also reflected a 4% sequential-quarter increase in procedure volume from the first quarter of 2009. We attribute the comparable-quarter procedure growth to the 21 new centers added since the end of the second quarter last year, while the sequential growth was primarily produced in our same-center pool. As anticipated, same-center revenue for the second quarter was flat with the second quarter last year, reflecting the continued economic downturn and the impact of one less business day in the second quarter this year compared with last year. In addition, same-center revenue was reduced approximately 100 basis points due to the impact of the Medicare rule revision.

“We completed one acquisition of a multi-specialty center during the second quarter and opened a de novo GI center. With the sale of one under-performing center during the second quarter, we had a total of 193 centers in operation at the quarter’s end. We also had two centers under development that we expect will open in 2010 and one center under letter of intent.

“AmSurg produced substantial net cash flows from operations for the second quarter, totaling $21.1 million, or 1.5 times net earnings from continuing operations attributable to AmSurg common shareholders. Our capital expenditures for the new center additions and maintenance totaled $6.9 million for the second quarter, and we reduced our debt by $18.1 million. Our total debt to capitalization improved to 35.3% at the end of the second quarter from 37.2% at the end of 2008, while our ratio of total debt to trailing 12 months EBITDA improved to 2.2 times from 2.4 times at year end.

“We continue to expect to fund the majority of our capital expenditures and stock repurchases for 2009 with net cash flows from operations for the year, which are expected to be in a range of $95 million to $100 million. At the end of the second quarter, we had cash and cash equivalents of $28.2 million and availability of approximately $59 million under our revolving credit facility, which matures in July 2011.

“As previously announced, we expect the majority of our expected center acquisitions for 2009 to be completed later in the year due to our focus on appropriate valuations in this economic environment. We also continue to weigh the benefits of additional repurchases of the Company’s common stock against completing additional center acquisitions. No stock repurchases have been completed since the end of the first quarter, and we have not changed our guidance for expected new-center additions for 2009. We expect any stock repurchases to be accretive to our earnings per share, and they may potentially reduce the number of center acquisitions completed for 2009.

“We are pleased with the stronger than anticipated procedure volume for the second quarter. Considering the continuing weak economic environment, we remain cautious as we move into the third quarter, which typically produces lower quarterly procedure volume due to seasonality. Accordingly, we do not assume that procedure volume during the third quarter will be as strong as that experienced in the second quarter. Today, we are increasing our financial guidance for 2009 to reflect the higher than expected procedure volume for the second quarter of 2009. Our revised guidance for 2009 and for the third quarter of 2009 is as follows:

• Revenues in a range of $660 million to $680 million for 2009, compared with the previous range of $650 million to $680 million.
• Same-center revenue growth is expected to be flat for the full year, which includes a negative impact of one percentage point from the effect of the Medicare payment system revision.
• The addition of 13 to 16 new centers for the year.
• An estimated effective income tax rate on pre-tax earnings attributable to common shareholders of 39.5% for the year.
• Net earnings from continuing operations per diluted share attributable to common shareholders for 2009 in a range of $1.69 to $1.71, including a negative $0.07 impact from the effect of the revised Medicare payment system revision. The previous range was $1.64 to $1.67.
• Net earnings from continuing operations per diluted share attributable to common shareholders for the third quarter of 2009 in a range of $0.42 to $0.44 per diluted share.”

The information contained in the preceding paragraphs is forward-looking information, and the attainment of these targets is dependent not only on AmSurg’s achievement of its assumptions discussed above, but also on the risks and uncertainties listed below that could cause actual results, performance or developments to differ materially from those expressed or implied by this forward-looking information.

Mr. Holden concluded, “While the recessionary economic environment and pending governmental healthcare reform continue to create near-term uncertainty for the ASC industry, we remain confident of AmSurg’s long-term growth potential. This confidence is based in part on three long-term trends about which there is high visibility: the aging of the American population, the increasing demand for preventative care and the focus on controlling healthcare costs. We believe the ASC industry provides the highest quality care for many procedures associated with aging and the lowest cost modality for that care. As a result, we expect the industry and AmSurg, as one of its leaders, are particularly well positioned to provide solutions that encompass all three of these long-term trends.”

AmSurg Corp. will hold a conference call to discuss this release today at 5:00 p.m. Eastern time. Investors will have the opportunity to listen to the conference call over the Internet by going to www.amsurg.com and clicking “Investor Relations” or by going to www.earnings.com at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available at these sites shortly after the call and continue for 30 days.

This press release contains forward-looking statements. These statements, which have been included in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by the important factors, among others, set forth in AmSurg’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and other filings with the Securities and Exchange Commission, including the following risks: adverse impacts on the Company’s business associated with current and future economic conditions; the risk that payments from third-party payors, including government healthcare programs, may decrease or not increase as the Company’s costs increase; adverse developments affecting the medical practices of the Company’s physician partners; the Company’s ability to maintain favorable relations with its physician partners; the Company’s ability to acquire and develop additional surgery centers on favorable terms; the Company’s ability to grow revenues by increasing procedure volume while maintaining its operating margins and profitability at its existing centers; the Company’s ability to manage the growth in its business; the Company’s ability to obtain sufficient capital resources to complete acquisitions and develop new surgery centers; the Company’s ability to compete for physician partners, managed care contracts, patients and strategic relationships; adverse weather and other factors that may affect the Company’s surgery centers; the Company’s failure to comply with applicable laws and regulations; the risk of changes in legislation, regulations or regulatory interpretations that may negatively affect the Company; the risk of becoming subject to federal and state investigation; the risk of regulatory changes that may obligate the Company to buy out interests of physicians who are minority owners of its surgery centers; potential liabilities associated with the Company’s status as a general partner of limited partnerships; liabilities for claims brought against our facilities; the Company’s legal responsibility to minority owners of its surgery centers, which may conflict with its interests and prevent it from acting solely in its best interests; risks associated with the potential write-off of the impaired portion of intangible assets; and potential liability relating to the tax deductibility of goodwill. Consequently, actual results, performance or developments may differ materially from the forward-looking statements included above. AmSurg disclaims any intent or obligation to update these forward-looking statements.

AmSurg Corp. acquires, develops and operates ambulatory surgery centers in partnership with physician practice groups throughout the United States. At June 30, 2009, AmSurg owned a majority interest in 193 continuing centers in operation and had two centers under development.

AmSurg Corp.
Claire M. Gulmi
Executive Vice President and
Chief Financial Officer
615-665-1283