10 Hospitals Acquiring, Planning or Developing Ambulatory Surgery Centers

Here are 10 hospitals acquiring, planning or developing ambulatory surgery centers in the last two months.

1. New York's Rochester General. Rochester General Health System has completed its acquisition of four medical buildings in Penfield, N.Y., one of which will be used as a new ambulatory surgery center. The health system now owns the Linden Oaks Medical Campus, for which it paid $10 million. Three of the new buildings are located on the campus, and the fourth — which will be used as the surgery center — is located on Linden Oaks Drive. The fourth building will also be expanded by 29,000 square feet in order to house the surgery center.

2. Tennessee's Community Health Systems. Community Health Systems, based in Brentwood, Tenn., has acquired Memorial Health Systems in York, Pa., which includes the Surgical Center of York and other outpatient and ancillary services. The purchase agreement includes a commitment to construct a replacement hospital within five years of the closing date. Commenting on the announcement, Wayne T. Smith, chairman, president and CEO of Community Health Systems, said, "The acquisition of Memorial Health Systems extends our strong track record of growth and investment in Pennsylvania."

3. California's High Desert Health System.
High Desert Health System in Lancaster, Calif., is constructing a new two-story ambulatory care facility that will house a large ambulatory surgical center. The new facility will house a surgery center in addition to adult and pediatric primary care clinics, an urgent care clinic, a women's care clinic, medical and surgical subspecialty clinics and ancillary diagnostic and treatment services. The facility broke ground five months ago.

4. Pennsylvania's Reading Hospital. Reading Hospital in Wyomissing, Pa., has delayed construction of a $189 million surgical center. When the concept of the surgery center was unveiled in September, hospital officials said groundbreaking was likely to occur in early spring of this year. Clint Matthew, president and CEO, now says the groundbreaking will occur in summer 2013. The surgery center will house 24 surgical suites, six of which will be hybrid surgical areas for invasive and open-body procedures as well as less-invasive procedures.

5. North Carolina's Southeastern Regional Medical Center. Southeastern Regional Medical Center in Robeson, N.C., is moving forward with plans to build a 60,000-square-foot medical facility in Robeson County. Phase I of the planned Southeastern Health Park will include a 13,000-square-foot ambulatory surgery center, as well as comprehensive orthopedic, GI and outpatient rehabilitation centers. Construction on the $19.5 million project is expected to begin in fall 2012.

6. Connecticut Children's Medical Center. Connecticut Children's Medical Center is looking to build a new $10 million surgery center in Farmington, Conn. The proposed 18,321-square-foot facility would add up to four operating rooms for outpatient surgery and give the medical center one of its largest locations outside the main campus in Hartford. The project would require approval from the Office of Health Care Access and could start construction by February. According to hospital officials, the new surgery center is needed because of increased demand to have pediatric care delivered by pediatric specialists rather than general physicians.

7. South Dakota's Avera Sacred Heart Hospital. Avera Sacred Heart Hospital in Yankton, S.D., has just completed its new surgical center. The 20,000-square-foot, $8 million surgery center is one of the largest projects ASHH has undertaken in the last 20 years. The renovation of the surgery center includes six operating rooms, 14 pre- and post-op rooms and a welcome area. Some of the new operating rooms and support areas were put into service as the construction was completed. A new project at ASHH, a three-story addition to include a new pharmacy, laboratory and sleep lab, will be completed in 18 months.

8. New York's Olean General Hospital. Olean (N.Y.) General Hospital officials dedicated the Mildred Milliman Outpatient Surgery Center on Thursday, marking the opening of the hospital's newest expansion. The $10.3 million, 22,000-square-foot facility is directly across from the hospital's main campus. The center includes four operating rooms, three endoscopic suites, preoperative and postoperative recovery areas, consultation areas and support space for patients undergoing minor surgical procedures.

9. South Carolina's Hilton Head Hospital. St. Joseph's/Candler Health System and Beaufort Memorial Hospital have renewed their fight against Hilton Head Hospital's proposed ambulatory surgery center in Bluffton, S.C. The hospital and health system have taken their objectives to the South Carolina Administrative Law Court, according to documents filed with the court this week. On May 8, the South Carolina Department of Health and Environmental Control board voted unanimously to uphold the agency staff's decision to award a certificate of need to Hilton Head Hospital for the outpatient facility. This decision was a reversal of a denial issued in February.

10. Florida's Mease Dunedin Hospital. Mease Dunedin Hospital in Dunedin, Fla., recently renovated it surgery center to include three integrated-technology operating rooms. Averaging about 600 square feet, the new operating suites are more than double the size of previous operating rooms. Construction also includes a new pre-operative holding unit, a new operating room control desk, an anesthesia office and a conference center. A fourth operating suite, an endoscopy suite, a new PACU and a new anesthesia room are scheduled to open by the end of November.

Related Articles on Transactions & Valuation:
Miami Children's to Open Four New Outpatient Centers
8 Key Considerations During ASC Ownership Transitions

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