Becker's ASC Review

8 ASC MANAGEMENT Hospitals aren't rushing to buy ASCs; here's what's happening instead By Laura Dyrda T he pandemic accelerated the migra- tion of surgical procedures to the outpatient setting, and many hospital executives are expanding their outpatient strategies. But that doesn't mean they're eager to buy ASCs. Instead of purchasing existing centers, health systems are partnering with large ASC chains to develop new centers, or opening surgery centers of their own. For example, Minne- apolis-based Allina Health partnered with Surgical Care Affiliates, an Optum company, in December 2019 with plans to develop a dozen surgery centers in five years. e partners announced a facility in Brooklyn Park, Minn., in February and aim to have two more facilities in development by the end of the year. Another prime example is St. Louis-based Ascension's partnership with Chicago and Nashville, Tenn.-based Regent Surgical Health in March. Ascension Capital invested in Regent as part of the partnership, and the two plan to develop, acquire and operate ASCs across Ascension's network, which includes 19 states. In the past, Regent has developed three-way joint ventures with hospitals and physicians and currently has 21 centers in its network. Finally, during the first quarter, ValueHealth, a Leawood, Kan.-based digital healthcare company, partnered with Cleveland-based Uni- versity Hospitals and Wilmington, Del.-based ChristianaCare to develop orthopedic ASCs. Hospitals are also developing ASCs on their own. During the first half of April, Oakland, Calif.-based Kaiser Permanente announced a $25 million facility with an ASC in Wood- bridge, Va.; Hartford, Ky.-based Ohio County Healthcare unveiled plans for a $16 mil- lion surgery center; and Brooklyn Hospital Center in New York City reported plans to develop a new ASC as part of a $1 billion project. Nashville, Tenn.-based HCA Health- care broke ground on a new ASC in Texas as well, and UT Health San Antonio said it was building an outpatient center with an ASC. ASC companies and private equity-backed groups have been more likely to purchase standalone specialty practices and out- patient centers so far this year. Surgery Partners plans to spend $400 million on ac- quisitions this year, and Dallas-based United Surgical Partners International has also set aside funds for growth aer acquiring 45 ASCs from Towson, Md.-based SurgCenter Development last year. Independent orthopedic groups are also finding new ways to avoid hospital employ- ment where possible by merging to form supergroups. e most recent example is Ortho Alliance NJ, which formed April 7 as a merger between seven groups. e organiza- tion includes more than 100 physicians and is poised for future growth. Since March 2020, three other orthopedic supergroups have formed in Texas, Florida and Tennessee. In these instances, more than 100 physicians come together to remain independent of hospitals. e already large orthopedic practices, such as Philadelphia- based Rothman Orthopaedics and Phoenix- based HOPCo, are expanding geographically in traditional markets as well as new markets. Both Rothman and HOPCo developed new partnerships in Florida over the past year. n Mass General $400M ASC expansion faces opposition from community, healthcare groups By Patsy Newitt A coalition of healthcare providers, community groups and busi- ness groups was created in opposition of Boston-based Mass General Brigham's ASC expansion across Massachusetts, Me- troWest Daily News reported April 28. Mass General Brigham is planning three ASCs — in Westborough, West- wood and Woburn — that would offer surgery, physician services and diagnostic imaging. The Coalition to Protect Community Care currently includes healthcare providers Wellforce, Shields Health Care Group and UMass Memorial Health, as well as 12 other community and business groups. The group plans to call for the Massachusetts Department of Public Health to "thoroughly scrutinize MGB's proposal through the lens of health equity, community demand and cost," a spokesperson told MetroWest Daily News. The $400 million ASC expansion is a part of the hospital's larger $1.9 billion project. n USPI names regional VP of operations By Patsy Newitt D allas-based United Surgical Partners International named Matt Wheelus regional vice president of opera- tions, Kitsap Sun Sun reported April 29. Mr. Wheelus previously served as COO and vice president of operations for Bremerton, Wash.-based St. Michael Medi- cal Center, a Virginia Mason Franciscan Health affiliate, for five years. Before that, he was COO and associate administrator of Las Vegas-based Spring Valley Hospital, according to his LinkedIn profile. USPI's platform has as interest in 308 surgery centers, including 24 surgical hos- pitals, in 33 states. The company added 3,700 physicians to their staff in 2020. n

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