Becker's ASC Review

27 ORTHOPEDICS Medtronic to spin off 2 businesses By Alan Condon M edtronic plans to separate its combined patient monitoring and respiratory interventions businesses, which are part of the company's medical surgical portfolio. e planned spinoff, NewCo, will allow for greater investment focus in the areas of "highest strategic priority" and help execute Medtronic's leadership strategy in attractive medtech markets, the company said in an Oct. 24 news release. "Independently, NewCo will be a leading connected care company with a compelling leadership position, attractive margins, and potential for growth acceleration with increased investment and dedicated capital allocation," said Geoff Martha, chair and CEO of Medtronic. "Looking ahead, we remain focused on active portfolio management with an ongoing process of evaluating potential additions and subtractions to further accelerate Medtronic's growth over the long-term." Following the separation of NewCo, Medtronic said it will have: • A more streamlined portfolio with increased focus on investing capital into opportunities that align with its long-term growth strategies. • Modestly faster organic revenue growth and an increased weighted average market growth rate. • A strong balance sheet and continued commitment to its strategy of driving durable growth. e patient monitoring technology portfolio includes Nellcor pulse oximetry, Microstream capnography, BIS brain monitoring, Invos perfusion monitoring, and HealthCast connected care platforms. e respiratory interventions technology portfolio includes Puritan Bennett ventilators, Shiley airway portfolio, McGrath Mac video laryngoscopy, DAR breathing systems, as well as ventilation soware systems designed to improve workflow and care delivery. e patient monitoring and respiratory interventions, part of the respiratory, gastrointestinal and renal division, generated global revenue of about $2.2 billion in fiscal year 2022. e business comprises more than 8,000 employees worldwide. Medtronic expects the separation to be completed in the next 12 to 18 months subject to certain closing conditions. e company plans to redeploy net proceeds consistent with its stated capital allocation priorities and does not expect the spinoff to affect its dividend policy. Medtronic said it will provide more details on the transaction at a later date. n 3 new orthopedic ASCs By Patsy Newitt Here are three new orthopedic ASCs opened or announced since Aug. 31: 1. Medical City Orthopedic and Spine Surgery Center Dallas opened on the Dallas-based Medical City Spine Hospital Campus. The ASC will be operated by 15 orthopedic and spine surgeons and will feature 25,000 square feet of space, four operating rooms, two procedure rooms, three overnight observation rooms and modern surgical technology. 2. Mercy Hospital will begin construction on a 13,500-square-foot ASC in Durango, Colo., later in 2022 focused on orthopedics and gastroenterology. Three Springs Surgery Center will include three operating rooms and two procedure rooms and will have 23-hour overnight stay capabilities. 3. Gainesville, Fla.-based UF Health East is renovating a facility in collaboration with Jacksonville-based Jax Spine & Pain Centers, which will include a new ASC. The three-story, 52,146-square-foot Jacksonville facility will house the ASC on its first floor. Other new renovations include an MRI unit and other upgrades totaling about $1.4 million. n 2 Florida orthopedic providers merge to form 17-physician practice By Carly Behm F ort Walton Beach, Fla.-based Orthopaedic Associates and Panama City, Fla.-based Southern Orthopedic Specialists will merge in November. The merged practice will have five locations, according to a news release shared Oct. 21 with Becker's. Orthopaedic Associates has 12 physicians, and Southern Orthopedic Specialists has five physicians. The merged practice will operate under Orthopaedic Associates' name. Orthopaedic Associates was founded in 1988. n

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