Six insights:
1. Hillcrest already manages the Charter Endoscopy Center in Flint, Mich., which it plans to convert into a multispecialty center.
2. So far, Hillcrest has three additional surgery centers planned for Rochester Hills, Royal Oak and Dearborn, all in Michigan. Two — the Spine and Joint Institute of Michigan in Royal Oak and the Insight Surgical Institute of Michigan in Dearborn — will be developed in existing centers because of the state’s certificate-of-need barriers.
3. Hillcrest aims to partner with spine, orthopedic, pain management and cardiovascular specialists to establish the centers.
4. Anesthesiologist Ricardo Borrego, MD, Hillcrest’s co-founder and manager, said the company will offer turnkey operations with expenses, overhead and equipment covered.
“We hire staff, do the accounting and manage it,” he told Crain’s. “[Physician investors] buy shares. It is the only out-of-pocket costs they have. We guarantee return of investment of $20 million to $30 million per project.”
5. Hillcrest, which plans to use capital from investors and its own resources, estimates that each surgery center will cost about $14 million to purchase, convert or build.
6. Hillcrest plans to use the same investment strategy as Pinecrest Capital Partners, a company that developed 48 surgery centers in Texas.
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