Surgical Care Affiliates
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| Surgical Care Affiliates, Inc. | |
|---|---|
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| Type | Private |
| Founded | 2007 |
| Headquarters | Birmingham, Alabama, USA |
| Key people | Andrew Hayek, President and Chief Executive Officer Joseph T. Clark Chief Operating Officer |
| Industry | Healthcare |
| Products | Ambulatory Surgery Centers |
| Revenue | ▲ $737 million USD (2006) |
| Employees | 6,000 (2007) |
| Website | www.scasugery.com/ |
Surgical Care Affiliates, Inc., based in Birmingham, Alabama, is the nation's largest independent surgical care company. The company is the former surgery division of HealthSouth Corporation. The company has network of 139 outpatient surgery centers and three surgical hospitals located in 35 states with over 3,000 physician partners.
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[edit] HealthSouth Outpatient Surgery Division
[edit] Growth
SCA was created in 1995 when HealthSouth entered into the outpatient surgery business following it purchase of Surgical Health Corporation in January. At the time HealthSouth was rapidly expanding from its traditional offering of inpatient and outpatient rehabilitative sevices into surgical and diagnostic care. The deal with Surgical Health added 36 surgery center in 11 states to HealthSouth's already 400 inpatient and outpatient centers. The number soon grew to 55 centers through the company's purchase of 12 facilities from Sutter Health in August of 1995 and through the purchase of independent facilities. Through the purchases of Surgical Health and Sutter, HealthSouth became the second largest provider of outpatient surgery.
HealthSouth's next big purchase came in October of 1995 when the company announced it was buying publicly held Surgical Care Affiliates in a $1.2 billion dollar deal. The deal added 67 more surgery centers including 10 more that were under development. The acquisition made HealthSouth the largest provider of outpatient surgery in the nation with a total of 122 surgery centers. In September of 1997, HealthSouth spent $180 to buy ASC Network Corp.'s 29 centers.
HealthSouth continued to grow its surgery division through acquisitions of independent facilities. In April of 1998, HealthSouth acquired 34 outpatient surgery centers from HCA, who was selling them to pay down debt steming from a billion dollar medicare fraud. By the time acquisition was complete, HealthSouth's number of surgery centers had grown to 212. Not less than three weeks later HealthSouth announced it would acquire the second largest publicly traded outpatient surgery center company National Surgery Centers. The $590 million dollar deal added 40 more surgery centers leaving HealthSouth with a total of 250 surgery centers.
[edit] First Planned Spin-off
HealthSouth's first planned spin-off of its surgery division came on August 27, 2002 when the company announced it was spinning-off the division into a publicly traded company. The spin-off company would have contained 209 outpatient surgery centers in 37 states and had annual revenues in excess of $1 billion dollars. Less than two months later on October 16, HealthSouth announced that they were suspending the proposed spin-off.
[edit] Scandal at HealthSouth
- See also: HealthSouth Growth and Scandal
On March 18, 2003 Federal agents from the FBI raided HealthSouth's corporate headquarters in Birmingham. As a result of the scandal, the company closed or sold many of its underperforming surgery centers.
[edit] Second Planned Spin-off
On August 14 of 2006, HealthSouth announced it was planning to either spin-off or sell it surgery division. This also came with the announcement that the company planned to do the same with its outpatient rehabilitation and diagnostic divisions in an effort to focus on its much larger inpatient division. HealthSouth retained investment banking company Goldman Sachs to evaluate potential deals. On March of 2007, the company announced that it would sell the division to TPG Capital for $920 million. The company also said it planned to retain around $25 million in equity in the division. HealthSouth also announced that the new company would stay headquartered in Birmingham.
[edit] Surgical Care Affiliates
Surgical Care Affiliates was created on June 30, 2007 when HealthSouth announced that it had closed on its transaction with TPG of the divisions sale. The new stand alone company was renamed Surgical Care Affiliates, in which the name came from a surgical company HealthSouth had previously acquired.
