Issue link: https://beckershealthcare.uberflip.com/i/1500722
19 TRANSACTIONS 3 ASC deals shaping the industry By Patsy Newitt e ASC industry is slowly consolidating, and three deals in the last five years point to the different ways ASC chains are growing. Here are the three deals: 1. Dallas-based Tenet Healthcare, parent company of ASC chain United Surgical Partners International, finalized a $1.1 billion deal in 2020 to acquire 45 ASCs from SurgCenter Development. In 2021, USPI, the largest ASC chain in the country, entered a $1.2 billion deal to acquire SurgCenter Development's remaining centers — adding 92 ASCs in 21 states. USPI continued making strides in consolidating those 92 ASCs in 2022, which is expected to continue in 2023. e move to acquire SurgCenter's 137 ASCs marks USPI's massive growth efforts in the last few years. 2. Optum, parent company of ASC chain SCA Health — based in Deerfield, Ill. — acquired Houston-based Kelsey-Seybold in 2022 for around $2 billion. Kelsey-Seybold is a multispecialty physician group with cancer and women's health centers, two ASCs and a sleep center. e group is building another ASC on a campus that will eventually have space for 82 providers. Optum, unlike Tenet, is focusing on large physician group acquisitions. 3. In 2022, Brentwood, Tenn.-based Surgery Partners inked a deal 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 across Surgery Partners' current and in-development locations. rough the agreement, Surgery Partners will also manage and assume ValueHealth's interest in three ASCs and four more in development. e move illustrates the Surgery Partners' focus on value-based care and cardiology. n Flagship acquires fully leased Tennessee ASC By Claire Wallace F lagship Healthcare Properties has acquired a 14,445-square-foot medical office and ASC building in Jackson, Tenn., according to an April 13 report from REJournals. e property is fully leased and anchored by TransSouth Healthcare in partnership with gastroenterology management services organization One GI. Terms of the sale were not disclosed. n Cleveland Clinic donates 5.8K-square- foot medical office building By Claire Wallace C anton, Ohio-based Cleveland Clinic Mercy Hospital has donated a 5,800-square- foot medical office building to Beacon Charitable Pharmacy, a group providing low-cost prescription medication to the community. The one-story building has been out of use for several years, and Beacon plans to put $1 million into its renovation, according to an April 17 news release. In 2022, Beacon served more than 2,300 uninsured and underinsured residents in surrounding counties, providing more than $4 million in medications. n Medical office building mergers, acquisitions up 14% in Q1 By Claire Wallace M edical office building mergers and acquisitions were up 13.7 percent in the first quarter of 2023 and up 5 percent from the same period last year. Medical office building spending increased by 21.3 percent over the last quarter, hitting $991 million in the first quarter, according to an April 14 press release. The largest medical office building sale with a disclosed price in the first quarter was for $190 million. Tennessee saw the highest number of mergers and acquisitions in quarter one with 11 deals, followed by California, Illinois, Florida and Texas. Montecito Medical was the busiest acquirer in the market, obtaining 261,307 square feet of property across the country. The real estate investment firm's most expensive transaction of the quarter reached $48 million. n