A wave of M&A hit the ASC industry over the past three months, with five major deals reshaping ownership across the sector.
Health systems and physician-owned platforms alike moved to consolidate, from Ascension’s $3.9 billion AmSurg acquisition and its subsequent expansion into North Carolina endoscopy care to Surgery Partners’ $1.15 billion divestiture of two Idaho hospitals to Intermountain Health.
Here are the five deals:
1. Charlotte, N.C.-based Advocate Health and Hospitals Corporation acquired a cardiovascular ambulatory surgery treatment center and outpatient facility in Naperville, Ill., for $23.4 million. The 42,438-square-foot facility was sold by HSG Medical and Capital Healthcare Properties to the Advocate Health subsidiary.
2. Ascension completed its $3.9 billion acquisition of AmSurg, expanding the St. Louis-based health system’s ASC network to more than 300 centers nationwide. The FTC published a consent order June 2 requiring Ascension to divest seven AmSurg ASCs in markets where the deal would “otherwise threaten competition,” including facilities in Tennessee, Florida, Oklahoma, Texas and Kansas. Six of the seven centers will be sold to SC Affiliates, a subsidiary of SCA Health and Optum. The seventh, located in Panama City, Fla., will be transferred to Florida Gastroenterology Center, a physician group that currently holds a minority stake in the facility and will assume full ownership.
3. Buffalo, N.Y.-based Catholic Health has acquired a controlling interest in the Ambulatory Surgery Center of Western New York, the region’s highest-volume ASC located in Amherst. The multispecialty ASC now covers orthopedics, cosmetic and plastic surgery, podiatry, pain management, and ENT services.
4. Less than two months after Ascension closed its acquisition of Amsurg, the combined platform added five endoscopy centers in North Carolina that bring 15 gastroenterologists and hepatologists into the network. Nashville, Tenn.-based Amsurg announced the additions July 14, naming Wake Forest Endoscopy Center, Wake Endoscopy in Cary, Wake Endoscopy in Raleigh, Clayton Endoscopy Center, and Wilson Endoscopy Center as the new affiliates.
5. Brentwood, Tenn.-based Surgery Partners signed a definitive agreement to sell its ownership interests in two hospitals to Salt Lake City-based Intermountain Health for about $1.15 billion. Surgery Partners is selling its ownership interests in Mountain View Hospital and Idaho Falls Community Hospital, both located in Idaho Falls, Idaho. The total consideration to Surgery Partners in the transaction is $795 million, with the company expecting to receive substantial cash proceeds when the deal closes.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.