31
JOINT
VENTURES
10 ASC closures in
the past year, and the
reason why
By Laura Dyrda
T
here have been several ASC
openings, and a few closures,
over the past 12 months.
Here is why a few of those centers
closed.
The Villages (Fla.) Regional Hospital
closed an ASC on March 1 because
it didn't attract enough specialists to
operate as normal. The ASC, which
opened in 2015, included ophthal-
mology, podiatry, dermatology, pain
management and plastic surgery. It
may reopen in the fall if circumstances
change.
On March 1, Laser Spine Institute
closed four ASCs in Tampa, Cincinnati,
Scottsdale, Ariz., and St. Louis, after
the company failed to secure enough
financing to continue operations.
The company, which launched its first
center in 2005, displaced around 1,000
employees with the closures.
During the six months before the com-
pany shut down, Laser Spine Institute
closed three other surgical centers
in an attempt to reduce its operating
costs, but was unable to develop a
sustainable cost structure.
Houston-based U.S. Pain & Spine
Hospital closed abruptly in May, and
63 employees were laid off. After the
organization's CEO and CFO departed
the hospital, it found accounting errors
and omissions in hospital operations
that impacted the bottom line.
Rockdale, Texas-based Little River
Healthcare closed its facilities in
December, including Temple (Texas)
Surgery Center due to financial chal-
lenges.
On Oct. 19, 2018, Naples (Fla.) Day
Surgery closed. Owners of the joint
venture surgery center, owned by
local physicians and NCH Healthcare
System, cited low patient volume and
competition from other ASCs in the
closure. Opened in 1986, the ASC had
five surgical suites and 64 employees.
n
PE-backed firm acquires eye center with
3 clinics, 2 ASCs: 5 things to know
By Laura Dyrda
O
mni Ophthalmic Management Consultants acquired an eye cen-
ter with locations in Pennsylvania and Maryland, according to a
press release published in PE Hub.
Five key notes:
1. Omni Ophthalmic is a portfolio of NMS Capital, a private equity firm.
The company acquired Ludwick Eye Center, a regional medical and sur-
gical eye care services provider. The organization has centers in Cham-
bersburg, Pa., and Waynesboro, Pa., as well as Hagerstown, Md.
2. The companies did not disclose the terms of their agreement, which is
Omni's fourth affiliation in the past two years.
3. The acquisition is Omni Ophthalmic's first affiliation in Maryland. The
firm already has locations in Pennsylvania and the acquisition strengthens
its presence in the region.
4. Ludwick Eye Center includes three clinics and two ASCs. Omni now
has 70 providers and 20 practice locations in the Northeast and Mid-
Atlantic regions of the U.S.
5. All together, Omni centers generate combined revenue of more than
$100 million. n
Michigan-based ASC company
aims to develop 15 centers
through 2020: 5 things to know
By Laura Dyrda
R
oyal Oak, Mich.-based Hillcrest Capital Partners, an ASC development and
management company, aims to open 15 ASCs in the near future, according to
Crain's Detroit Business.
Five things to know:
1. e company will partner with physician investors to develop 15 surgery centers
in Michigan by the end of 2020.
2. Hillcrest was founded in 2015 and currently manages one center, Charter Endos-
copy Center in Flint, Mich. e company has plans for three additional centers in
the works.
3. e company estimated development will cost around $14 million for each center
and guaranteed a return of investment between $20 million to $30 million per center,
according to the report.
4. Michigan is a certificate-of-need state, which makes developing new ASCs chal-
lenging. However, Hillcrest owners report multiple physicians have committed to
ASCs in planned CON applications.
5. Hillcrest, founded by Abe Baydoun and Ricardo Borrego, MD, are looking for
centers to include spine, orthopedics, pain management and cardiovascular care. n
