Becker's ASC Review

31 TRANSACTIONS 5 of the biggest ASC deals in 2022 By Riz Hatton Here are five of the biggest deals from the largest ASC chains or their parent companies that Becker's has reported on since May 3: 1. Surgery Partners closed an $800 million equity offering in November. Bain Capital Private Equity, the company's investment partner, participated with $225 million of the raise. e other $575 million is an upsized underwritten public offering. 2. Optum, parent company of SCA Health, acquired Houston- based Kelsey-Seybold for around $2 billion. Kelsey-Seybold is a multispecialty physician group with cancer and women's health centers, two ASCs and a sleep center. 3. Dallas-based Tenet Healthcare paid $406 million to acquire Dallas-based Baylor Scott & White Health's 5 percent equity position in USPI at the end of the second quarter. e acquisition gives Tenet full ownership of USPI, which runs 410 ASCs and 24 surgical hospitals in 34 states. 4. Surgery Partners is joining with ValueHealth to expand access to high-value surgical care. e partnership will aim to build ASCs and deploy ValueHealth's value-based surgical programs at Surgery Partners' current and in-development locations. 5. GI Alliance and USPI formed a joint venture for two Texas endoscopy centers. e partnership includes GAB Endoscopy Center in San Antonio and South Plains Endoscopy Center in Lubbock — both co-owned by GI Alliance's physician partners. n Iowa clinic files for bankruptcy following $97M malpractice judgment By Claire Wallace O B-GYN Associates of Iowa City & Coralville (Iowa) has filed for bankruptcy following a malpractice judgment of $97.4 million, CBS affiliate KMTV reported Nov. 2. Kathleen and Andrew Kromphardt sued the clinic and Mercy Iowa City, alleging their son sustained brain damage in the hours leading up to his birth because medical workers failed to recognize signs of oxygen deprivation. e Kromphardts' son, now 4, is unable to walk on his own and barely able to speak, according to the report. In March, a jury in Johnson County, Iowa, awarded the family $97.4 million in damages. e clinic argues it is responsible for $45 million, with the hospital responsible for the remainder. e Kromphardts' lawyers, on the other hand, say the clinic is responsible for $75 million. Before the trial, Mercy Hospital capped its liability at $7 million, which it paid shortly aer the trial's conclusion, leaving the medical center on the hook for the remainder of the award, the report said. e clinic filed for bankruptcy Oct. 31, citing the whole $97.4 million. n Surgery Partners snags $800M equity offering By Patsy Newitt S urgery Partners has snagged an $800 million equity offering, the Brentwood, Tenn.-based ASC chain said Nov. 21. Bain Capital Private Equity, the company's investment partner, participated with $225 million of the raise. The other $575 million is an upsized underwritten public offering, according to the report. The offering is expected to close Nov. 23. n Kaiser Permanente's $1.5B Q3 loss: What ASCs need to know By Patsy Newitt Oakland, Calif.-based Kaiser Permanente reported a net loss of $1.5 billion for the third quarter. Here are four more things ASCs need to know: 1. The company posted total operating revenues of $24.3 billion and expenses of $24.3 billion for the quarter. 2. Year-to-date capital spending totaled $2.5 billion. 3. There was an operating loss of $75 million in the third quarter compared to an operating income of $38 million in the same period the year prior. 4. The net loss of $1.5 billion in the third quarter of 2022 compares to a $1.6 billion net income in the third quarter of 2021. n

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