Mercy Medical Center, USPI acquire majority ownership in Siouxland Surgery Center: 5 key points
Sioux City Journal report. Here are five things to know about the transaction and the parties involved.
1. Mercy Medical Center, a non-profit hospital, was one of the first investors in Siouxland Surgery Center when it was established in 1994. Collectively, USPI and Mercy now own more than 51 percent of the surgery center. Details of the transaction were not disclosed.
2. The new investment will lead to more than $100 million in improvements to nearby facilities. Improvements will include a streamlined information technology system, a chronic disease registry and support for community health programs, according to the report.
3. Siouxland Surgery Center is a multispecialty surgical center and hospital. The facility has more than 130 physician partners. Neurosurgeon Ralph Reeder, MD, serves as president of the facility. "By all three of us working together, we will secure the much-needed capital commitment for the healthcare of our community and the development of a truly clinically integrated network," said Dr. Reeder in the report.
4. The new partnership is designed to meet the needs of a growing community. Efforts to create a clinically integrated network will provide patients the care they need in Siouxland, rather than patients seeking care in Omaha, Sioux Falls or Mayo Clinic in Rochester, Minn. "It's about growing our organization in the right place for the right reasons at the right time," said Mercy interim CEO James FitzPatrick in the report.
5. As of the first quarter of this year, USPI owns and operates 216 surgical facilities, 148 of which are joint ventures with not-for-profit health systems. The ASC company recently completed another majority acquisition, a 55 percent interest in Somerset Ambulatory Surgery Center in Somerville, N.J.
More Articles on Transactions and Valuation Issues:
57 Ambulatory Surgery Centers Opened or Announced in 2014
USPI Acquires Majority Interest in Somerset Ambulatory Surgery Center
6 Must-Reads for ASC Physicians Planning to Take on a Joint Venture Partner
© Copyright ASC COMMUNICATIONS 2015. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.
New From Becker's ASC Review