Becker's ASC Review

19 TRANSACTIONS & JOINT VENTURES Ophthalmology investments spread across the South: 5 key developments By Angie Stewart T he South became a hot region for ophthalmology investments aer two private equity-backed platforms en- tered the market earlier this year, according to PhysiciansFirst Healthcare Partners. PhysiciansFirst is an investment bank repre- senting U.S. physician practices and surgery centers. Here are five updates on ophthalmology activity in the South: 1. Eyecare Services Partners (Dal- las). Portfolio company EyeCare Services Partners formed in May 2014 when private equity firm Varsity Healthcare Partners acquired Baltimore-based Katzen Eye Group. Since putting down roots in Dallas, ESP has acquired Towson, Md.-based Dulaney Eye Institute, Dover-based Delaware Eye Care Center, Rehoboth Beach-based Delaware Eye Institute, Washington, D.C.-based Eye Doctors of Washington and e National Retina Institute in Washington, D.C. In May 2017, private equity firm Harvest Partners recapitalized ESP and then acquired Varsity HealthCare Partners' majority ownership interest in ESP. ESP also acquired West Palm Beach-based Florida Vision Institute in Janu- ary 2018. 2. Southeast Eye Specialists (Chat- tanooga, Tenn.). Private equity firm Flexpoint Ford partnered with Southeast Eye Specialists in February 2017. Southeast Eye Specialists' entities include Center for Facial Rejuvenation, Eye Surgery Center of Chat- tanooga, Pediatric Eye Specialists, Southeast Eye Surgery Center and e Retina Center, all based in Chattanooga. 3. EyeSouth Partners (Atlanta). Private equity firm Shore Capital Partners partnered with Atlanta-based Georgia Eye Partners in March 2017, forming portfolio company EyeSouth Partners. Several ophthalmology practices now affiliated with EyeSouth include: Gainesville (Ga.) Eye Associates, Decatur- based Georgia Ophthalmology Partners, Atlanta-based Georgia Retina, Atlanta-based Opal Aesthetics and Valdosta, Ga.-based South Georgia/North Florida Eye Partners. 4. One Vision Eye Partners. (Annapo- lis, Ind.). Portfolio company One Vision Eye Partners was established in January, when private equity firm Centre Partners acquired Annapolis, Md.-based Chesapeake Eye Care and Laser Center. Ophthalmol- ogy practices and surgery centers that have joined One Vision Eye Partners include Charlotte Hall, Md.-based Whitten Laser Eye, Arlington (Va.) Eye Center and Hager- stown-based Maryland Vision Institute. 5. Eye Health America. (Alpharetta, Ga.) In March 2018, practice management company Eye Health America was created through private equity firm LLR Partners' acquisition of e Eye Associates in Sara- sota, Fla., and Bradenton, Fla.; Greenville, S.C.-based Clemson Eye; and Greenville- based Piedmont Surgery Center. Eye Health America aims to continue expanding in the Southeast. n Note: PhysiciansFirst did not include EVP EyeCare affiliate Arlington, Texas-based Klieman Evangelista Eye Center in the South region transaction roundup due to the portfo- lio company's majority presence in Colorado. USPI deployed $120M on acquisitions in 2018 so far, and more to come By Laura Dyrda F or the second quarter of 2018, Austin, Texas-based United Surgical Partners International report- ed strong net operating revenues at $531 million, a 12.5 percent increase from the same period last year. The company's same-facility revenue also increased 6.9 percent and case volume was up 4.3 percent. USPI's rev- enue per case jumped 2.4 percent and surgical revenue was up 6.6 percent. USPI, along with Conifer, helped drive Tenet's second quarter performance. "[USPI] performed very well and have posted a strong quarter," Ronald Rittenmeyer, Dallas-based Tenet Health- care's executive chairman and CEO, said during the second quarter conference call, as transcribed by Seek- ing Alpha. "Volume growth was strong across all areas of business." The company will likely continue making acquisitions through the second half of the year, according to the call. "We completed some great acquisitions [in 2018]," said Mr. Rittenmeyer. "Year-to-date, USPI has deployed $120 million on acquisitions. And importantly, our pipeline for both acquisitions and de novo development remains very strong, and we think it's likely we will exceed the $100 mil- lion to $150 million target for acquisitions and de novos this year. And frankly, we're happy to do it given the great returns in this business." Last year, USPI reported a strong fourth quarter in part be- cause more patients decide to undergo elective surgery in ASCs after they've met their deductibles. Ana Gupte of Leerink Partners asked whether the company expected a similar boost since deductibles are rising. "We obviously saw a very strong fourth quarter last year," said Jason Cagle, CFO of USPI, also on the call. "As far as the general trends in our business and the seasonality you've seen related to those deductibles, we don't see any trend changing that." n

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