28 ASC Joint Ventures Planned or Developed in 2011

Here are 28 joint ventures between physicians, surgery center management companies and/or hospitals during 2011, organized alphabetically by state. Read the Becker's ASC Review list of 175 surgery centers that were developed or planned in 2011. Note: If you were involved with an ambulatory surgery center joint venture partnership in 2011 and it is not listed here, e-mail rachel@beckersasc.com.


1. An ASC in Tuscumbia was planned to operate as a hospital/physician joint venture. An ASC in Tuscumbia, Ala., owned by and in operation on the campus of Helen Keller Hospital, was planned to become a hospital/physician joint-venture ASC. Keller Outpatient Surgery Pavilion, which opened in 2009, will be majority owned by the hospital. Physicians will have the opportunity to buy up to 49 percent of the ownership shares in the outpatient surgery center.


2. Three Arizona surgery centers were added to a USPI/Catholic Healthcare West agreement. A joint-venture partnership between United Surgical Partners International and San Francisco-based Catholic Healthcare West added three Arizona ASCs to its portfolio in July. The ASCs — Metro Surgery Center in Phoenix, Surgery Center of Peoria and Surgery Center of Scottsdale — were previously managed by USPI but not affiliated with the health system.


3. Health Inventures announced a partnership with California's Sansum Clinic.
In September, Health Inventures announced it had entered into a partnership with Sansum Clinic to develop and operate a new ASC in Santa Barbara, Calif., The ASC is planned to be open to patients in 2014, and is part of a larger development intended to improve access to specialty care in Santa Barbara County.

4. Regent Surgical Health partnered with a California hospital and 17 physician partners on two joint venture ASCs. Regent Surgical Health announced in November that it would partner with Lodi (Calif.) Memorial Hospital and 17 physician partners on two surgery centers. The joint-venture ASCs were Lodi Outpatient Surgical Center and the Endoscopy Center of Lodi. The facilities provide specialties including ENT, endoscopy, general surgery, orthopedics, podiatry, ophthalmology and urology.

5. French Hospital Medical Center in California became the majority owner of Templeton Surgery Center.
French Hospital Medical Center, based in San Luis Obispo, Calif., has announced it became the majority owner of Templeton (Calif.) Surgery Center in March. Under the new partnership, services provided by the ASC will not change, according to a news release from French Hospital. The ASC will continue to be managed by the physician members, along with administrators from French Hospital.


6. Health Inventures announced the opening of a new joint-venture ASC in Connecticut. Health Inventures announced it opened a new joint-venture surgery center in Norwalk, Conn., in partnership with Norwalk Hospital and 15 local physicians. Norwalk Surgery Center is a multispecialty ASC focusing on chronic pain management, ENT, ophthalmology, orthopedics and general surgery.

7. Greenwich (Conn.) Hospital and Orthopaedic & Neurosurgery Specialists announced a joint-venture ASC agreement. Greenwich (Conn.) Hospital and Orthopaedic & Neurosurgery Specialists, based in Greenwich, announced a joint-venture ASC agreement in May. Under the agreement, surgeons from ONS will perform procedures at Greenwich Hospital's Leona M. and Harry B. Helmsley Ambulatory Surgical Center one day a week.


8. C/N Group partnered with Gulf Comprehensive Surgery Center in Florida. The C/N Group entered into a joint-venture agreement with Gulf Comprehensive Surgery Center in Englewood, Fla. Under the venture agreement, C/N Group will take an ownership position in the surgery center, as well as provide certain administrative services to the facility.

9. New joint-venture Red Hills Surgical Center opened in Tallahassee.
The Red Hills Surgical Center, a joint-venture ASC between Tallahassee Memorial Hospital and 35 local physicians, opened in April. The ASC is a 17,000-square-foot multi-specialty facility which features five operating rooms. It will be used by physicians from local practices representing specialties including ENT, orthopedic surgery, general surgery and obstetrics/gynecology, according to the release.

10. Surgery Partners acquired its 50th ASC. Surgery Partners announced the acquisition of its 50th ASC in Orange City, Fla., in September. The new facility is one of the state's newest outpatient multispecialty surgical facilities, according to the report.


11. Regent Surgical Health partnered with Chicago's Swedish Covenant Hospital and 23 physicians on a new surgery center.
Regent Surgical Health announced it was partnering with Chicago's Swedish Covenant Hospital and 23 physician partners on a new ASC included in a $55 million expansion of the hospital's medical campus. The surgery center is scheduled to open in July 2012.


12. Surgical Management Professionals started managing Iowa's Gateway Surgery Center. In September, Surgical Management Professionals announced it had signed an agreement with Gateway Surgery Center in Clinton, Iowa. Gateway, owned by Medical Associates, a 50-provider multispecialty group in Clinton, is a multispecialty surgery center featuring two operating rooms and two procedure rooms. The ASC provides services in general surgery, ophthalmology, orthopedics, gynecology, ENT, podiatry, urology, gastroenterology and pain management.


13. Ownership of Kentucky Surgery Center was transferred between competing health systems. The ownership interest in Louisville Orthopaedic Surgery Center in St. Matthews, Ky., held by Louisville, Ky.-based Jewish Hospital & St. Mary's HealthCare, was transferred to Louisville-based Baptist Healthcare System at the end of the year. The ownership transfer comes after Baptist agreed in late August to provide a site for University of Louisville physicians to perform tubal ligations. After the transfer, Baptist will partner with Louisville Orthopaedic in owning the surgery center.

14. Jewish & St. Mary's Healthcare partnered with Premier Surgery Center to boost competition. Jewish & St. Mary's HealthCare signed a deal in May to bring Premier Surgery Center of Louisville to the health system's Old Henry campus. Under the partnership deal, Jewish & St. Mary's became part-owner of both Premier and SurgeCenter of Louisville, the latter of which performed 4,261 surgeries last year. The centers were previously co-owned by Surgical Care Affiliates and community physicians.


15. Blue Chip Surgical Center Partners announced a partnership with Baltimore's Greenspring Surgery Center.
Blue Chip announced a new partnership with Greenspring Surgery Center in Baltimore, introducing three new spine surgeons to the orthopedic and pain surgeon ownership group. The 6,300-square-foot surgery center opened in January 2007 and has one operating room and two procedure rooms. It handles a range of orthopedic surgical treatment.

16. SCA entered into a management agreement with Maryland's Suburban Outpatient Surgery Center. Surgical Care Affiliates entered into an agreement to manage the surgical services Bethesda, Md.-based Suburban Outpatient Surgery Center, a subsidiary of Suburban Hospital Healthcare System, a member of Johns Hopkins Medicine. SCA's management objectives included strengthening current ASC service lines and launching new service lines and specialties.


17. Michigan surgeons and hospitals formed a joint venture to co-manage surgical services. Forty-three Michigan surgeons entered into a 50-50 joint venture with Southfield, Mich.-based Providence Hospital and Novi, Mich.-based Providence Park Hospital, both part of St. John Providence Health System, to co-manage the hospitals' inpatient and outpatient surgery services in May. Surgeon investors will receive hourly compensation for management and committee services as well as incentive payments for meeting certain quality and efficiency benchmarks, according to the report.


18. Missouri Health System acquired a majority stake in a local surgery center. Saint Francis Healthcare System, based in Cape Girardeau, Mo., acquired a majority interest in Physicians Alliance Surgery Center in Cape Girardeau in September. The health system owns a 51 percent interest in the ASC, while the remaining 49 percent interest is shared by physicians.


19. Symbion partnered with Montana's Great Falls Clinic. Symbion entered into a new partnership with Great Falls (Mont.) Clinic in August. Symbion agreed to provide additional capital and management services to the Great Falls Clinic's outpatient multispecialty medical group practice (Main Clinic, Specialty Center, Immediate Care Center and Northwest Clinic), the Great Falls Clinic's surgery center (Great Falls Clinic Ambulatory Surgery Center), and the Great Falls Clinic's hospital (Great Falls Clinic Medical Center).

New York

20. ASCOA partnered with a New York City hospital and local surgeons for a new joint-venture surgery center. Ambulatory Surgical Centers of America announced a partnership with Roosevelt Hospital in New York and 26 local surgeons to develop a new, multispecialty outpatient surgery center on Manhattan's West Side. The ASC will be called the Roosevelt Surgical Center and is expected to open in the first half of 2013.

North Carolina

21. New North Carolina joint-venture surgery center was planned by Southeastern Regional Medical Center. Southeastern Regional Medical Center, based in Lumberton, N.C., is planning a new joint-venture surgery center. SRMC management sees the joint-venture opportunity as a way to increase physician alignment. The ASC is expected to cost $27 million.

22. Rex Healthcare sold a minority share of Rex Surgery Center of Cary (N.C.) to a physician group. Rex Healthcare, based in Raleigh, N.C., sold a 22 percent controlling stake in Rex Surgery Center of Cary (N.C.) to a physician group in March. The 25-physician group paid $3 million for the shares of the ASC, with the option to buy additional shares and grow its stake up to 45 percent over the next year. Rex Healthcare retained its majority stake the facility but involved the physicians in operational decisions.

23. SCA entered an agreement with Moses Cone Health System for a North Carolina surgery center. In January 2011, Surgical Care Affiliates announced it had entered into a formal agreement with Moses Cone Health System, Carolina Neurosurgery and Vanguard Brain and Spine, which purchased an interest in the general partnership that operates the Greensboro (N.C.) Specialty Surgery Center. The ASC will be jointly owned by the three organizations, the center's physician partners and SCA. It will continue to be managed by SCA.


24. Surgical Management Professionals purchased an interest in Ashtabula Surgery Center in Ohio. Surgical Management Professionals purchased interest in Ashtabula (Ohio) Surgery Center in September. The center is a 5,200-square-foot facility with two operating rooms, one procedure room, 14 credentialed physicians, five credentialed CRNAs and 15 employees. It offers orthopedics, ophthalmology, pain management, podiatry and chiropractic services.

25. Meridian Surgical Partners acquired Ohio's Eastwind Surgical. Meridian Surgical Partners acquired a majority interest of Eastwind Surgical in Westerville, Ohio, in July. The ASC, which was established in 2007 by the members of Central Ohio Neurological Surgeons, specializes in outpatient neurosurgery and pain management procedures.

26. New Ohio joint-venture surgery center was planned for Columbus. A new hospital/physician joint venture ASC was planned for Columbus, Ohio, as a partnership between OhioHealth Corp. and independent practice Hand and Microsurgery Associates. Health Inventures will manage the facility, which occupies the first floor of a 47,000-square-foot medical building. The project is expected to open in April 2012.

Rhode Island

27. SCA sold Wayland Square Surgicare in Rhode Island to a local hospital. In March, Surgical Care Affiliates sold Wayland Square Surgicare in Providence, R.I., to Rhode Island Hospital. The company will continue management of the ASC. Rhode Island Hospital received approval for a change in effective control from the Rhode Island Department of Health and took ownership of the facility from SCA in 2010.


28. Texas' University General Health System acquired an interest in Mainland Surgery Center. University General Health System in Houston completed the acquisition of a minority interest in ASP of Dickinson LLP, d/b/a Mainland Surgery Center, in Dickinson, Texas, in May 2011. UGHS has an exclusive right to acquire the balance of the equity under certain terms and conditions. The transaction includes a management services agreement with UGHS Management Services, a wholly owned subsidiary of University General Health System.

Related Articles on Transactions & Valuation:
MI's Marquette General Exploring Partnerships to Build New Surgery Center
Healthcare Realty Exec: 6 Reasons Outpatient Centers Will Thrive in 2012
Kaleida Health Moves Forward With Plans for Buffalo Surgery Center

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