Becker's ASC Review

12 ASC MANAGEMENT Physician buys 2 Illinois ASCs' assets for $50K after one halts operations By Angie Stewart A n Illinois partnership shut down Belleville (Ill.) Surgical Center and sold Physicians' Surgical Center to Shakeel Ahmed, MD, aer both Belleville-based facilities lost surgeons to local hospital groups. Six key details: 1. Belleville Surgical Center, a limited partnership partially owned by Deerfield, Ill.-based Surgical Care Affiliates, gained state approval to permanently dis- continue operations at its four-room ASC of the same name. Operations at Belleville Surgical Center had been temporarily suspended Aug. 24, 2018. 2. e entity said it wanted to shut down Belleville Surgical Center and sell operations of another ASC it owned — Physicians' Surgical Center — because sur- geon departures caused unsustainably low utilization. 3. e number of procedures performed at Belleville Surgical Center dropped from 1,519 in 2015 to 1,019 in 2017. e primary physician who practiced at Physicians' Surgical Center stopped doing cases there when he took a position with a local hospital. 4. Dr. Ahmed purchased Physicians' Surgical Center's operations, as well as Belleville Surgical Center's land and building, for $50,000. e transaction closed upon state approval. Dr. Ahmed is affiliated with Metroeast Endoscopy Center in Fairview Heights, Ill. 5. Physicians' Surgical Center's net patient revenue was $5.66 million in 2017, down from $20.31 million in 2016. Belleville Surgical Center saw a similar drop in net patient revenue, from $20.31 million in 2016 to $6.2 million in 2017. 6. SCA owned about 51 percent of Belleville Surgical Center in the limited partnership, and various physi- cians each owned less than 5 percent of the remaining interest. "Many previously independent physicians in the area have moved their practices to new hospitals in Shiloh [Ill.] and O'Fallon [Ill.] and have become part of the hospitals' medical groups. Because of this shi in referral patterns, the surgical center experienced a significant reduction in procedures, and the facility has become financially unsustainable. e unsustain- ability of the operation is evidenced by the fact that no purchaser of the operations could be found," Belleville Surgical Center said in a state filing. n USPI taps CFO from Goldman Sachs — 4 quick facts By Angie Stewart U nited Surgical Partners International named Owen Morris CFO. Four quick facts: 1. Mr. Morris was previously managing director and healthcare real estate head at Goldman Sachs, where he held various leadership positions during an 11-year tenure. 2. He reports to Tenet Healthcare CFO Dan Cancelmi and USPI President and CEO Brett Brodnax. 3. Mr. Morris succeeds Jason Cagle, who left the Addison, Texas- based company in early May. 4. USPI is an ambulatory healthcare provider and subsidiary of Dallas-based Tenet Healthcare, operating 284 surgical facilities, 101 urgent care centers and 24 imaging centers. n Surgical center building changes hands for $7M By Angie Stewart A 22,000-square-foot medical office and surgical center prop- erty in Bridgewater, N.J., was sold for $7 million, RISMedia reports. An entity called 1081 Partners acquired the building, which has a long-term lease in place. Weichert Commercial Brokerage arranged the transaction. Weichert Commercial Senior Vice President David Chippendale, who special- izes in medical office and investment deals, was the sole broker. n Buyer pays $15.4M for Kansas ASC — 3 quick points By Angie Stewart A n Overland Park, Kan.-based medical office building housing Mid-America Surgery Center was sold for $15.4 million. Three quick points: 1. CNL Healthcare Properties II sold the facility to Overland Park MOB, an affiliate of HCP Medical Office Buildings. 2. CNL, a real estate investment trust, paid $14 million for the build- ing in 2017. 3. The sale is expected to generate net sales of about $9.5 million, which CNL will use to pay down debt. n

• Cover