Issue link: https://beckershealthcare.uberflip.com/i/1412045
17 ASC MANAGEMENT Surgery center sues to block 'anticompetitive' acquisition by hospital: 5 details to know By Laura Dyrda A Marion, Ill.-based multispecialty ASC is testing President Joe Biden's executive order to scrutinize and halt acquisitions that would limit competi- tion and increase healthcare prices. Marion HealthCare, a surgery center with orthopedics, gastroenterology, general surgery and more, filed a lawsuit July 29 to challenge Southern Illinois Hospital Ser- vice's planned purchase of Harrisburg (Ill.) Medical Center. e surgery center cited President Biden's July 9 executive order to enforce antitrust laws written to prevent "excessive concentra- tion of industry," particularly in healthcare. "e effect of the proposed acquisition on the ... primary and corollary product markets would be to substantially reduce competition in those markets, limiting alternative, competing providers of hospital and ambulatory surgery services, thereby potentially raising costs to patients, reducing choice of institutional providers and physi- cians, and further, causing antitrust injury to Marion HealthCare," Marion HealthCare claims in the lawsuit. Five details: 1. Marion alleges in the lawsuit that South- ern Illinois Hospital has around 76 percent of the ambulatory surgery services market in a seven-county area that includes Marion HealthCare, a physician-owned facility. e lawsuit also notes Southern Illinois Hos- pital has 100 percent of ASCs in the area's two dominant counties. 2. e acquisition would further consolidate surgical services and referring physicians, as Harrisburg owns and operates multiple primary care and specialty clinics that refer patients to Marion HealthCare for outpa- tient surgery. e acquisition would disrupt these referral patterns because Harrisburg's physicians would refer patients to Southern Illinois Hospital's surgery centers aer the transac- tion, Marion alleges. 3. Marion claims the acquisition is "anti- competitive" and would hurt its ability to recruit and retain surgeons to join the group and become owners. "A reduction in the ability to attract new physicians and/or replace departing or retiring physicians has a substantial negative effect on Marion HealthCare's income and utilization and by extension, the availability, timeliness and efficiency of services to its patients," Marion said in the lawsuit. 4. e lawsuit also notes Marion provides group health insurance for employees through BlueCross BlueShield of Illinois, and the acquisition will allow Southern Illinois Hospital to charge higher prices because it has an exclusive provider contract with the insurer. 5. Marion HealthCare requests that the courts bar Southern Illinois Hospital from acquiring Harrisburg and prevent any future transactions between the two parties. n 4 medical office buildings acquired for more than $100M By Alan Condon A nchor Health Properties purchased four medical office buildings that total more than 210,000-square feet and have a combined value of more than $100 million. Two of the buildings are in California; the others are in North Carolina and Washington. The properties were acquired through joint ventures with existing institutional equity partners in an off- market setting. So far this year, Anchor has acquired 12 medical office buildings, which have a combined value of more than $330 million, accord- ing to a July 19 news release. "We remain focused on building relationships with long-term investment grade tenancy in class A assets that offer convenient, accessible healthcare services to the surrounding community," said James Schmid, chief investment officer and managing partner with Anchor. n Surgical Notes acquires ASC revenue cycle management provider By Patsy Newitt S urgical Notes acquired Zulu Health, an ASC-focused revenue cycle management provider, Surgical Notes said Aug. 3. Los Angeles-based Zulu Health's president and CEO, Ken Bulow, will join Surgical Notes as executive vice president of operations. Zulu Health offers solutions including revenue cycle outsourcing and consulting, coding and compliance, and accounts receivable follow-up. Surgical Notes provides revenue cycle services and solutions for ASCs and surgical hospitals with a portfolio of more than 20,000 healthcare providers. n