Becker's ASC Review

14 ASC MANAGEMENT Physicians Endoscopy names new president: 4 insights By Rachel Popa P hysicians Endoscopy named David Young as its new president. Mr. Young brings 20 years of experience across a variety of industry sectors to the role. "David's appointment is a clear reflec- tion of the company's current state: ready to take on the future and fired up aer a healthy year of growth," said Barry Tanner, Physicians Endoscopy CEO. "Physicians Endoscopy is now poised for a major evolution in the market, and we are excited about David's unique experience of nurtur- ing companies of our size to into the next generation." Here's what you need to know: 1. Mr. Young previously served as Privia Health's COO, where he applied an organic growth strategy to the business, growing the company's revenue to over $1 billion and expanding to more than 2,000 provid- ers. 2. In his new role, Mr. Young will drive Physicians Endoscopy's partnership devel- opment and grow its reach and offerings. 3. Mr. Tanner will continue to serve as CEO, working on business development and expanding within the GI healthcare sector. 4. In 2016, Pamlico Capital sold Physi- cians Endoscopy to Kelso & Company in a recapitalization transaction with manage- ment. Over the past two years, Physicians Endoscopy has experienced significant growth through acquisition and de novo markets. e company now partners with 60 ASCs and more than 600 gastroenter- ologists responsible for 550,000 annual procedures. "Barry Tanner is a magnificent leader. He may be the only CEO I know that steadfast- ly grew an outstanding business through six or so different private equity funds," said Scott Becker, publisher of Becker's Health- care. "He is bright, smart, loyal and nice. An outstanding leader." n 6 statistics on ASC acquisition activity, competition By Angie Stewart F orty percent of ASC companies saw acqui- sition activity in the space increase in 2017, according to HealthCare Appraisers' 2018 ASC Valuation Survey. HealthCare Appraisers surveyed 15 respondents representing more than 700 surgery centers across the U.S. to formulate its results. Here are six statistics on ASC acquisition activity and competition: Acquisition activity 1. No change from previous year: 27 percent 2. Decreasing: 33 percent 3. Increasing: 40 percent Competition for acquisitions 4. No change from previous year: 47 percent 5. Decreasing: 13 percent 6. Increasing: 40 percent n CMS freezes $10.4B in risk adjustment payments By Angie Stewart C MS will not make $10.4 billion in payments that were due to insurers under the ACA. Here's what you should know: 1. The payments were required under the ACA's "risk adjust- ment program" to offset costs for insurers whose customers need expensive medical services. They were due to insurers in the fall for expenses from 2017. 2. CMS Administrator Seema Verma said the suspension is based on a legal dispute over the formula used to calculate risk adjustment payments. About three years ago, a New Mexico federal court ruled the formula was flawed, but a Massachu- setts judge found it to be fair, according to The Washington Post. 3. The Blue Cross Blue Shield Association President Scott Serota told The Washington Post the decision "will significantly increase 2019 premiums for millions of individuals and small business owners" and harm access to affordable coverage. 4. America's Health Insurance Plans President Matt Eyles said the decision could create market uncertainty as insurers decide whether to participate in ACA marketplaces for 2019 and increase premiums for many health plans, The Washington Post reported. n

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