2010 saw a significant increase over 2009 in surgery center transactions. During 2010, the pricing of transactions tended to increase from 2009. To learn more about these trends and see examples of pricing seen in various transactions, read ASC Transactions and Pricing During 2010: 4 Key Concepts.
Here are 12 reports on recent transactions involving ASCs. Scroll through the pages or navigate the "Article Index" to learn more about each transaction.
NovaMed to Be Acquired by Surgery Partners, Go Private
NovaMed has announced it will be acquired by Surgery Partners, an affiliate of Surgery Center Holdings, for about $109 million.
The transaction, which will make NovaMed private, is valued at approximately $214 million, including the assumption or repayment of approximately $105 million of indebtedness by Surgery Partners.
Surgery Partners is an affiliate of H.I.G. Capital, a global private equity investment firm.
The agreement was unanimously approved by NovaMed's board of directors, including a special committee of independent directors.
The acquisition is expected to close in the second quarter of 2011.
McGuireWoods, led by Scott Becker, Geoff Cockrell and Amber Walsh, was one of the law firms which provided counsel to the buyer in connection with this transaction. For information on the McGuireWoods healthcare practice, please contact sbecker@mcguirewoods.com.
Read the news release about the acquisition of NovaMed.
Upstate New York Hospital Acquires Syracuse Surgery Center
Upstate University Hospital in Syracuse, N.Y., has acquired the Harrison Outpatient Surgery Center in downtown Syracuse, according to a report from The Greater Binghamton Business Journal.
Upstate University acquired the six-OR, 19,000-square foot ambulatory surgery center business and its equipment for $2.3 million. It will continue to lease the space.
Following the acquisition, which was completed in Dec. 2010, the hospital renamed the ASC the Upstate Outpatient Surgery Center, according to the report.
The surgery center was owned by Holdings LLC, which also owns an ASC in Camillus, N.Y., according to earlier reports.
Read the report from The Greater Binghamton Business Journal about the acquisition of Harrison Outpatient Surgery Center.
Ohio's Fairfield Medical Center Acquires Lancaster Surgery Center
Fairfield Medical Center in Lancaster, Ohio, has acquired Riverview Surgery Center, also in Lancaster, according to a report from the Lancaster Eagle-Gazette.
The 50,000 square-foot ambulatory surgery center with four operating rooms was co-owned by a group of surgeons with a 70 percent ownership stake and Mount Carmel Health, based in Columbus, Ohio, owning the remaining 30 percent.
The 222-bed, nonprofit Fairfield Medical Center spent $8.5 million on the purchase of the ambulatory surgery center, with the business costing $5.4 million and the campus costing $3.1 million, according to the report.
The ASC, which was built in 1997, will retain its name.
Read the Lancaster Eagle-Gazette report about Riverview Surgery Center.
Illinois Surgery Center in Joliet Becomes Hospital Department
Provena Saint Joseph Medical Center in Joliet, Ill., has announced the former Ambulatory Surgery Center of Joliet is now officially a department of the hospital.
Physicians at the ambulatory surgery center, which is located adjacent to the hospital, retain management responsibilities, according to a hospital news release. The ASC has three operating rooms and two procedure rooms.
McGuireWoods, with a team led by Geoff Cockrell and Scott Becker, represented the ASC in this matter.
Read the news release about the Joliet surgery center.
Irving Place Capital to Acquire National Surgical Hospitals
Irving Place Capital, a middle-market private equity firm, has announced it will acquire National Surgical Hospitals, an owner and operator of 14 surgical hospitals and seven ambulatory surgery centers located in 10 states.
IPC, which was advised on the deal by Cain Brothers, will replace NSH's current owners, Ferrer Freeman & Co., Charlesbank Capital Partners and JPMorgan Asset Management.
David Crane, a senior advisor to IPC, chairman of New Hope Bariatrics and former CEO for Medcath, will become chairman of NSH's Board of Directors.
John G. Rex-Waller, president and CEO of NSH, said of the acquisition in an IPC news release, "IPC's capital strength will allow us to reinvigorate our acquisition program and enhance our ability to add services and invest in the latest proven technology to empower physicians to deliver better outcomes for patients," according to an IPC news release.
McGuireWoods was one of the law firms that worked with IPC on this transaction. Krist Werling, Scott Becker and Rob Marks led the McGuireWoods team.
The terms of the transaction were not disclosed. The transaction is expected to close around the end of January.
Read the IPC news release about the acquisition of National Surgical Hospitals.
Owner and Operator of Two Texas Surgery Centers Acquired
First Surgical Texas, an owner and operator of two ambulatory surgery centers and a general acute care hospital in the greater Houston metro area, has been acquired by Arkson Nutraceuticals, according to a news release.
First Surgical Texas owns First Street Surgical Center, First Surgical Woodlands and First Street Hospital. The company reported revenues of more than $44 million for the fiscal year ending Dec. 31, 2009, according to the release.
It was founded in 2002, and has more than 30 affiliated physicians and an additional 60 non-affiliated physicians that use First Surgical's locations for surgical procedures. Procedures performed include bariatrics, reconstructive and cosmetic plastics, orthopedics, pain management, neurosurgery and podiatry.
Under the terms of the acquisition, the company will change its name to First Surgical Partners, of which First Surgical Texas will continue to operate as a wholly-owned subsidiary. The company will now be publicly traded and listed on the OTC Bulletin Board.
Tony Rotondo serves as CEO and Dr. Jacob Varon serves as chairman of the board of Arkson. No additional information about Arkson is available at this time.
Read the news release about the acquisition of First Surgical.
Indiana Surgery Center Acquired by Good Samaritan Hospital, Ends Seven-Year Competition
The Vincennes (Ind.) Surgery Center has been acquired by Good Samaritan Hospital, also based in Vincennes, according to a news release from the hospital.
The acquisition, which becomes effective Jan. 1, 2011, ends a seven-year competition between the Vincennes Surgery Center and Good Samaritan Hospital's Same Day Surgery Center.
"We have been competitors with Vincennes Surgery Center for seven years and it's time to move forward, together with a single focus, improving health as a regional center of excellence to all of the counties we are privileged to serve," said Rob McLin, president and CEO of Good Samaritan Hospital in the news release. "All parties involved in this agreement felt this would be an ideal way to support development of an accountable care organization, which is a collaboration between physicians, hospitals and all providers that will be clinically and financially accountable for healthcare delivery in our community."
The Vincennes Surgery Center opened in late 2003 as a freestanding outpatient ambulatory surgery center and is on course to perform almost 2,000 procedures this year. Good Samaritan Hospital's Same Day Surgery Center opened in spring of 2004, and will perform approximately 2,325 surgeries this year.
The current owner of Vincennes Surgery Center will remain owner of the ASC's real estate.
Read the Good Samaritan Hospital news release about the acquisition of Vincennes Surgery Center (pdf).
Surgeon Group Acquires Minority Share in North Carolina Hospital Surgery Center
A group of surgeons is acquiring a minority ownership stake in an ambulatory surgery center in Cary, N.C., owned by Raleigh, N.C.-based Rex Hospital, according to a report from the Triangle Business Journal.
The physician group, the Surgical Center of the Carolinas, is working to raise $7.3 million to acquire a 45 percent share in the ASC.
The group had considered applying for a certificate of need to build its own surgery center, but with the high cost associated with the CON process and no guarantee of approval, the surgeons instead approached Rex Hospital about investing in the 4-OR ASC, according to the report.
Read the Triangle Business Journal report about the Cary surgery center (subscription required for full article access).
Northstar Healthcare Announces Syndication of MicroSurgery Institute of Houston
Northstar Healthcare, an owner and manager of ambulatory surgery centers, has announced the syndication of its newly formed operating partnership MicroSurgery Institute (MSI) of Houston.
The syndication involves an initial seven physician partners. Northstar will participate in the MSI partnership by leasing the surgery center assets and staff of The Palladium for Surgery – Houston to MSI for an ownership interest of 25 percent, a joint venture with an intended contractual life of one year, according to a news release from Northstar Healthcare.
Under the arrangement, Northstar will manage MSI and work to identify additional physician partners to participate in the MSI partnership.
Read the news release about the syndication of MIS by Northstar Healthcare.
Hawaii's Hilo Community Surgery Center Enters Into Joint Venture With Hospital
Hilo (Hawaii) Medical Center has announced it has entered into a joint venture with Hilo Community Surgery Center.
The hospital is now a minority partner with the ambulatory surgery center, according to a news release from Hilo Medical Center. Daily management and operation will continue under the ASC's administration.
The surgery center opened in June 2000 and offers specialties in gynecology, ENT, general surgery, ophthalmology, orthopedics, plastic surgery, podiatry, urology, pain management and IV therapy.
"The joint venture allows our surgeons to leverage the surgery center's services for certain outpatient procedures," said Howard N. Ainsley, East Hawaii Regional CEO of Hawaii Health Systems Corp., which governs the hospital, according to the news release. "This agreement also follows the accountable care organization's recommendation that encourages revenue generating partnerships between hospitals and ambulatory surgery centers."
Read the Hilo Medical Center news release about Hilo Community Surgery Center (pdf).
Arkansas Health System Applies to Change Hospital to Surgery Center
St. Joseph's Mercy Health System, based in Hot Springs, Ark., has announced it is applying to the Arkansas Department of Health to change the licensure for St. Joseph's Mercy Health Center at HealthPark from an acute-care hospital to an ASC.
The decision to apply for the licensure change is a result of a merger earlier this year between St. Joseph's Mercy and HealthFirst Physicians Group. In the merger, Mercy acquired HealthPark Hospital, which had an average daily census of only five patients. St. Joseph's Mercy can absorb these patients, making it unnecessary to keep the HealthPark facility as an acute-care hospital.
"HealthPark is licensed as an acute-care facility and is open 24/7," said St. Joseph's Mercy President Tim Johnsen, according to a news release from the system. "Based on those requirements, we have to have staff in the emergency department the entire time. As we've studied it and operated it for the past four months, it's obvious that we can provide a much better patient experience by moving HealthPark to an outpatient surgery center."
The licensure change will take effect after Department of Health approval, which is expected to take 60 days.
Ohio Joint-Venture ASC to Become Hospital-Based Surgery Center
Zanesville (Ohio) Surgery Center, currently a joint venture operation with Genesis HealthCare System and community physicians, will be restructured as a hospital-based service, according to a Whiz News report.
The change will facilitate integration with Genesis' surgical services and improve the center's financial performance following damaging reimbursement changes, according to the report.
The facility's name will change to Genesis Surgery Center, and the goals of the center will align with Genesis HealthCare's strategic plan to improve the system's overall delivery of care.
Read the Whiz News report on Zanesville Surgery Center.