Becker's ASC Review

13 12th Annual Spine, Orthopedic and Pain Management-Driven ASC Conference + The Future of Spine - call (800) 417-2035 H ere are 10 key facts about large ambula- tory surgery center companies. Compa- nies are listed in alphabetical order. AmSurg (Nashville, Tenn.). Christopher A. Hold- en, president, director and CEO of AmSurg, has held all three positions since October 2007. He was previously a founding member, senior vice president and division president of Triad Hospi- tals based in Plano, Texas. He has more than 21 years of experience with primarily multi-facility and multi-market healthcare management. AmSurg specializes in the growth and development of single-specialty centers between 3,000 and 4,000 square feet without hospital partners. Its typical partnership model includes 51 percent ownership but no management fee. As of December 2013, Am- Surg owns and operates 243 centers and partners with more than 1,800 physicians across the U.S. In AmSurg's fourth quarter 2013 financial report, the company announced a 22 percent growth in fourth quarter earnings per diluted share, which Mr. Holden attributed to a 10 percent growth in procedures in the calendar year. AmSurg's fourth quarter revenue was $284.6 million, up 17 percent from fourth quarter 2012. Total revenues for 2013 were $1.08 billion, also up 17 percent from 2012. AmSurg acquired six centers in 2013, which are expected to produce approximately $20 million in annualized operating income. The company is publicly traded, and its shares trade for $45.04 as of March 10. ASCOA (Hanover, Mass.). Over the years, Ambula- tory Surgical Centers of America has attracted some of the brightest people in the surgery center busi- ness. Founded in 1997, ASCOA is led by CEO Luke Lambert, MBA, CFA, CASC; COO Laurie Hendrix, BSN, RN, CASC; CFO Robert Westergard, CPA; and CDO and founder Brent W. Lambert, MD, FACS, with input from founder Thomas J. Bombardier, MD, FACS, and George A. Violin, MD, FACS. While ASCOA is based out of Hanover, Mass., it has partnerships with both single-specialty and multispecialty centers in 17 states. The major- ity of its centers are physician-owned without a hospital partner, with ASCOA investing at 30 percent as a minority partner and physicians owning the remaining 70 percent of the center. ASCOA's traditional model also includes a man- agement contract; it does not manage centers it does not own. ASCOA also has a small number of hospital joint ventures in which partnerships are available for both hospital-associated and non-hospital phy- sicians. In its joint venture partnerships, ASCOA and the hospital typically both own 25 percent of the center, with physicians owning the other 50 percent. The company has developed more than 65 ASCs across the country. ASD Management (Los Angeles and Dallas). ASD Management is run by managing partners Joe Zasa and Bob Zasa. The company is known for its top level management's close involvement with its cen- ters. While headquartered in Dallas and Los Ange- les, ASD has ownership and provides services to centers in nearly 25 different states. The company is currently affiliated with nearly 30 centers. In a typical situation, the company provides services to hospital-physician joint venture ASCs. ASD usu- ally owns a relatively small percentage of the center and provides management services. The majority of its centers are multispecialty, but ASD has also worked closely with pediatric-driven centers and plastic surgery centers. The company also works to help single-specialty centers expand to multispecial- ty. ASD Management is privately held and funded. Hospital Corporation of America (Nashville, Tenn.). The Hospital Corporation of America's Ambulatory Surgery Division is run by Gregary W. Beasley, CPA, who has served as president of the branch since 2004. He has been with HCA's ambulatory surgery division since 1995 and pre- viously served as the organization's COO. As of Dec. 31, 2013, HCA operates 115 freestand- ing surgery centers in 20 states and in England, which, as a standalone company, makes it one of the largest ASC companies in the world. HCA became a private company for the second time in its history in 2006, acquired by Kohlberg Kravis Roberts, Bain Capital, Merrill Lynch and the Frist family. It returned to being publicly trad- ed on Oct. 3, 2011 with a $3.79 billion IPO. In the fourth quarter of 2013, HCA Holdings' earnings were up 35 percent per diluted share. Its earnings were $424 million on revenue of $8.84 billion. HCA Holdings finished 2013 with posted earnings of $2.01 billion on $33 billion in revenue. As of March 10 HCA Holdings shares traded for $49.55 per share. Meridian Surgical Partners (Brentwood, Tenn.). John C. Wilson, Jr., is the CEO of Meridian Sur- gical Partners and Kenneth N. Hancock serves as president and chief development officer. Cath- erine W. Kowalski, RN, is an executive vice presi- dent and COO. Jim L. Uden is an executive vice president and CFO of the company. The company specializes in the acquisition, development and management of multispecialty and spine-driven ambulatory surgery centers. Typically Meridian is a majority partner of its acquired facilities and takes a minority stake in development partnerships to properly align ob- jectives. All of Meridian's centers are physician- owned, with the exception of the recent addition of a hospital partner, Bronson Battle Creek, who now owns a minority share in Brookside Surgery Center in Battle Creek, Mich. Meridian owns and operates over a dozen centers in 11 states. PEAK, which stands for performance, efficiency, achieve- ment and knowledge, is the company's approach for bringing value to physician partners to reach the highest level of success. Facts & Figures: 10 Large ASC Companies to Know By Scott Becker, JD, Carrie Pallardy and Ellie Rizzo

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