Solara Surgical is shifting its growth playbook as independent physician partnership opportunities shrink.
Steve Hockert, chief development officer at the Southlake, Texas-based ASC developer, joined Becker’s to discuss how the company has moved in recent years from primarily joint venturing with independent physicians toward deeper health system affiliations.
Editor’s note: This interview was edited lightly for clarity and length.
Question: Can you go a little deeper into the types of relationships Solara has focused on and how those may shift in the future?
Steve Hockert: Our existing relationship profile has centered on independent physician availability in the market. Historically, we’ve aligned by forming joint ventures with independent physicians and putting them together to meet ASC needs.
Over the last two to three years, we’ve shifted more toward health system affiliations — Arizona, Mississippi and now Florida. That’s been a foundational shift in how we approach the business.
What makes us unique is our ability to operate across the continuum — from cobbling together independent physician partnerships to working with health systems that have very high standards. Being able to serve both ends of that spectrum is, I think, unique to us.
Q: How do you see this strategy evolving over the next five years?
SH: Over the next five years, I think a couple things will happen. We’ll have more of a strategic focus on the Southeast quadrant of the U.S. If you looked at our market penetration, you’d notice a sort of east-to-west fault line, with most of our activity south of that. That wasn’t by design — it just happened that way.
Going forward, Florida and the Southeast will be a priority. There may be consolidation opportunities, and we’ll likely shift partially toward an acquisition-based growth model over the next five years, with emphasis on that region.
Q: Why the switch toward an acquisition-based mindset after so many years focused on independent alignment?
SH: Frankly, there’s just not as much opportunity as there was 10 years ago. Private equity owns many physician practices now. What was available then isn’t as available today.
You have to pivot with the changes to continue to grow and survive. Health system alignment is a priority focus. We don’t want to dismiss independent physician opportunities, but private equity consolidation and health system acquisitions have made those opportunities far less frequent.
Q: Is anything about this shift concerning to you?
SH: Not really. From a growth standpoint, I feel like our company is positioned very well. We’re privately held, and we genuinely care about servicing the health needs of the communities we’re in.
When we align with health systems, it’s to support their mission. ASCs are increasingly a big pillar of that support, and we’re well positioned to help them deliver on that.
