Healthcare development and management company Hillcrest Capital Partners plans to develop and operate 15 Michigan surgery centers with physician investors by the end of 2020, Crain's Detroit Business reports.
Six insights:
1. Hillcrest already manages the Charter Endoscopy Center in Flint, Mich., which it plans to convert into a multispecialty center.
2. So far, Hillcrest has three additional surgery centers planned for Rochester Hills, Royal Oak and Dearborn, all in Michigan. Two — the Spine and Joint Institute of Michigan in Royal Oak and the Insight Surgical Institute of Michigan in Dearborn — will be developed in existing centers because of the state's certificate-of-need barriers.
3. Hillcrest aims to partner with spine, orthopedic, pain management and cardiovascular specialists to establish the centers.
4. Anesthesiologist Ricardo Borrego, MD, Hillcrest's co-founder and manager, said the company will offer turnkey operations with expenses, overhead and equipment covered.
"We hire staff, do the accounting and manage it," he told Crain's. "[Physician investors] buy shares. It is the only out-of-pocket costs they have. We guarantee return of investment of $20 million to $30 million per project."
5. Hillcrest, which plans to use capital from investors and its own resources, estimates that each surgery center will cost about $14 million to purchase, convert or build.
6. Hillcrest plans to use the same investment strategy as Pinecrest Capital Partners, a company that developed 48 surgery centers in Texas.
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