Becker's ASC Review

25 JOINT VENTURES Healthcare on Dec. 1, 2016. Since then Envi- sion Healthcare's physician services business acquired Alabama Neonatal Medicine and Desert Mountain Consultants. 2. AmSurg operated 260 ASCs and one surgi- cal hospital at the end of Q3 FY 2016, slightly more than 253 ASCs during Q3 FY 2015. e company acquired three ASCs during Q3 FY 2016 and disposed of one ASC. At the end of the quarter, AmSurg had two ASCs under let- ter of intent and one under development. 3. During Q3 FY 2016, AmSurg had: • Net revenue reaching $822.2 million • Ambulatory net revenues totaling $314.6 million • Adjusted EBITDA for ambulatory surgery jumping to $61.1 million 4. Sheridan, AmSurg's physician services di- visions, acquired a series of practices this year. In April 2016, Sheridan acquired North Florida Anesthesia Consultants, which is comprised of more than 70 physicians, cer- tified registered nurse anesthetists and anes- thesiologist assistants spanning 18 facilities in Florida. Sheridan also acquired Jandee Anes- thesiology Partners and Karadan Anesthesi- ology and Pain Management, both based in Ramsey, N.J., in May 2016. 5. Sheridan acquired AllegiantMD in July 2016. AllegiantMD provides radiology services to Tampa residents. Within July 2016, Sheridan also purchased Boca Raton, Fla.-based Reso- lute Anesthesia and Pain Solutions as well as Clermont, Fla.-based South Lake Anesthesia Services. During the latter half of this year, Sheridan expanded its anesthesiology business in Southern California through acquiring Am- bulatory Anesthesia Associates and Genesis Anesthesia Services in September. Sheridan also acquired California-based Fidere Anes- thesia Consultants in October 2016. 6. Christopher A. Holden is AmSurg's presi- dent, CEO and director. Seasoned with more than two decades of healthcare experience, Mr. Holden joined the company in 2007. Phil- lip A. Clendenin is the company's president of ambulatory services. Claire Gulmi is Am- Surg's executive vice president, CFO, secre- tary and director, and Kevin Eastridge served as AmSurg senior vice president of finance and chief accounting officer. Robert Coward joined AmSurg in 1994, and currently serves as the president of Sheridan Healthcare. 7. In March 2016, AmSurg launched a program focused on improving patient safety during scope reprocessing. e program requires staff that reprocesses endoscopes between gastro- enterology procedures to complete rigorous training and demonstrate a detailed under- standing of the highly technical steps associat- ed with the process. Since its launch, more than 1,000 healthcare professionals have enrolled in the program. Surgical Care Affiliates (Deer- field, Ill.) 1. SCA had a total of 205 ASCs as of Nov. 1, 2016. SCA acquired six new facilities in Q3, four of which are consolidated and two of which are nonconsolidated. SCA also closed one consolidated facility and sold one equity method facility. Of SCA's existing facilities, seven converted from nonconsolidated to consolidated. e conversions did not impact SCA's total facility count for the third quarter. 2. During Q3 FY 2016, SCA had: • Net operating revenue hitting $322.8 million • Net income hitting $13.3 million • Adjusted EBITDA less non-controlling interest increased to $47.9 million this quarter, up 13.4 percent from the same period during FY 2015 3. Compared to the first nine months of FY 2015, SCA's total joint replacements have more than doubled. irty-seven of SCA's facilities are cur- rently performing total joint replacements. 4. Joel Gordon, Andrew Miller and Jack Massey founded SCA in 1982. Andrew Hayek is the current chairman and CEO of SCA, be- ginning his tenure with the company in 2008. 5. SCA has partnered with a handful of prac- tices in the last couple months. In November 2016, SCA partnered with Norwich, Conn.- based River Valley Ambulatory Surgery Cen- ter and Surgical Center of Connecticut in Bridgeport. SCA's partnership with Surgical Center of Connecticut and River Valley Am- bulatory Surgery Center expands its presence in the state to six locations. SCA also part- nered with Executive Surgery Center in Tom- ball, Texas, in September 2016. New Jersey-based health system Virtua Health and Surgical Care Affiliates partnered with Ber- gen-Passaic Cataract Laser and Surgery Center in Fair Lawn, N.J. rough the partnership, the surgery center is jointly owned by SCA, Virtua and the center's physician partners. 6. In June 2016, SCA established its inaugu- ral Physician Advisory Board, composed of six board members. e board members will offer guidance and industry expertise to en- hance patient care and serve SCA's physicians. e members include Bart Asner, MD; Rob- ert S. Bray, MD; Norman H. Chenven, MD; omas M. Deas, Jr., MD; Stefan W. Kreuzer, MD; and Daniel Murrey, MD. 7. SCA is affiliated with SCA Medical Mis- sions, which offers medical care to those in need. SCA Medical Mission initially opened a surgery center in Honduras in 2014, Holy Family Surgery Center, as its initial site for medical mission trips. In 2016, SCA Medi- cal Missions completed 11 medical bridges in Honduras, with 462 participants volunteering more than 23,100 hours. Hospital Corporation of America (Nashville, Tenn.) 1. As of Sept. 30, 2016, HCA operated 117 ASCs spanning the United States and the United Kingdom. Comparatively, the company operated 114 ASCs at the end of Q3 FY 2015. 2. In addition to its 117 ASCs, HCA also oper- ates 169 hospitals. HCA is one of the largest healthcare companies in the United States, with R. Milton Johnson leading the company as HCA's chairman and CEO. 3. HCA named Gregary W. Beasley president of the company's ambulatory surgery division in 2004, a position he continues to hold. He previously was COO of ASD Management, which has offices in Nevada, California, Texas and Florida. 4. During the Q3 of FY 2016, HCA had: • Revenue rallying 4.2 percent, hitting $10.27 billion • Net income attributable to HCA totaling $618 million • Adjusted EBITDA reaching nearly $1.96 billion 5. In 1968, omas Frist Sr., MD, omas Frist Jr., MD, and Jack Massey founded HCA, forming one of the first hospital companies in the nation. 6. In March 2016, HCA announced that the Ethisphere Institute, a global leader in defin- ing and advancing the standards of ethical business practices, named HCA to its list of 2016 World's Most Ethical Companies. is year marked the seventh consecutive year that the Ethisphere Institute has provided HCA with this award. 7. HCA donated $21 million in cash to chari- table organizations last year, with the company making community outreach and service a priority. Last year, HCA staff members pledged nearly $8.3 million to community agencies and volunteered more than 36,000 hours. Surgery Partners (Nashville, Tenn.) 1. Founded in 2004, Surgery Partners has expanded to owning and operating 96 ASCs throughout the United States. 2. Surgery Partners reported the following re- sults for Q3 FY 2016: • e company had 18 percent year-over-year revenue growth to $282.7 million • Same-facility revenue was up 10.3 percent to $281.2 million. Same facility cases increased 4.3 percent • Adjusted EBITDA increased 12.3 percent to $44.7 million 3. During Q3 FY 2016, Surgery Partners closed

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