Becker's ASC Review

27 JOINT VENTURES Flower Orthopedics system reduces phalangeal joint fusion intraoperative time by 33% — 3 notes By Shayna Korol T he Flower Orthopedics FlowerCube® system in first metatarsal phalangeal joint fusions led to a 33 percent reduction in intraoperative time compared to using traditional implants, ac- cording to a multicenter, prospective, IRB approved clinical trial. Three things to know: 1. The FlowerCube is a single-use sterile implant and instrument system. It is part of the suite of Flower Orthopedics Ready-for-SurgeryTM foot and ankle solutions. 2. Using a FlowerCube also saved over $1,300 in third-party reimbursement costs when performed at an ambulatory surgery center compared to tradi- tional implants. 3. Patients achieved 98.59% joint union by 12 weeks post-surgery, which is consistent with prior literature. n Surgery center reopens after closing in August: 3 details By Rachel Popa K ingsport, Tenn.-based Holston Medical Group is reopening an outpatient surgery center in Bristol, Tenn., after the facility shut its doors in August 2018, according to WJHL. The details to know: 1. The center is set to open early this year, with two surgical rooms and a procedure room. 2. The surgery center is expected to create 13 jobs. 3. The surgery center will offer partnership oppor- tunities for independent surgical physicians. n Mercy Clinic acquires Oklahoma City-based orthopedic practice, ASC — Outlook for 2019 ASC M&A By Laura Dyrda O 'Fallon, Mo.-based Mercy Clinic acquired a 50-year-old orthopedic practice in Oklahoma City that includes an ASC, according to an Edmond Sun report. Effective Jan. 1, Mercy Clinic acquired Oklahoma City-based Ortho- pedic Associates and its on-campus ASC, renaming it Mercy Clinic Orthopedic Associates. e practice includes 12 providers and multiple locations across the greater Oklahoma City area. According to the report, post-acquisition the practice has been able to accept more types of insurance, and it has joined Mercy's larger pro- vider network. is acquisition kicks off what could be an active year in ASC M&A and joint venture centers between hospitals and physicians, according to president and COO of Surgical Notes, Randy Bishop. "ASCs are increasingly finding themselves the target of hospitals and health systems for many reasons, including hospitals desiring to recap- ture lost volume, increase surgical capacity, grow their presence in the market and solidify relationships with physicians," wrote Mr. Bishop in a December 2018 article for Becker's ASC Review. "Such hospital- physician ASC joint ventures have seen a rapid rise over the past several years." In 2018, Avanza Healthcare Strategies and Clark Hill | Strasburger released a report on hospitals and health systems investing in ASCs, indicating the larger organizations are making ASCs an important part of their outpatient strategy. HealthLeaders Media conducted the survey polling 109 healthcare executives, which found 41 percent of organiza- tions had ownership in or were affiliated with freestanding ASCs and two-thirds of those centers were joint ventures. Forty-eight percent of the respondents anticipated ASC investments and affiliations in the future. "According to the respondents, the business case for ASC investments is clear: greater market share, lower costs, improved physician engagement and more satisfied patients," the Avanza release noted. e report also showed that most organizations surveyed — 62 percent — owned or had affiliations with just one ASC; 93 percent owned four or fewer centers. Hospitals also typically prefer a majority controlling interest, and 29 percent of the respondents said they prefer full owner- ship of the center. Hospitals and health systems aren't the only potential acquirers in 2019. Large and mid-sized ASC chains are also looking to expand in 2019 and private equity investors are making headway into the healthcare space, especially the gastroenterology, ophthalmology and orthopedic space. n

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