Surgical Care Affiliates

Surgical Care Affiliates, Inc.
Public
Industry Healthcare
Founded 2007
Headquarters Deerfield, Illinois,[1]
Colonial Brookwood Center
Birmingham, Alabama
Key people
 Andrew Hayek, President and Chief Executive Officer
Pete Clemens, Chief Financial Officer
Joseph T. Clark Chief Development Officer
Products Ambulatory Surgery Centers
Revenue Increase $1.4+ billion USD (2013) [2]
Number of employees
 5,000 (2013) [3]
Website www.scasurgery.com

Surgical Care Affiliates, Inc., based in Deerfield, Illinois and operational headquarters in Birmingham, Alabama, is the largest outpatient ambulatory surgical care company in the United States. The company is the former outpatient surgical division of HealthSouth Corporation.[4] The company has network of 185 outpatient surgery centers located in 34 states.

Origins

SCA was founded in 1982 by Joel Gordon.[5] In that same year, SCA was listed on the New York Stock Exchange. [6]

Early Growth

From 1982 to 1995, SCA grew to approximately 70 facilities [7] with Ken Melkus serving as the CEO for most of that time.[8]

The HealthSouth Era

HealthSouth created an outpatient surgery division following the purchase of Surgical Health Corporation in January. At the time HealthSouth was rapidly expanding from its traditional offering of inpatient and outpatient rehabilitative services 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 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 1995 when the company announced it was buying publicly held Surgical Care Affiliates in a $1.2 billion 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 1997, HealthSouth spent $180 million to buy ASC Network Corp.'s 29 centers.

HealthSouth continued to grow its surgery division through the acquisition of independent facilities. In April 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 outpatient surgery center company National Surgery Centers. The $590 million deal added 40 more surgery centers leaving HealthSouth with a total of 250 surgery centers.

Scandal at HealthSouth

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.

Planned Spin-Offs

HealthSouth's first planned spin-off of its surgery division came on August 27, 2002. The spin-off would have contained 209 outpatient surgery centers in 37 states and had annual revenues of over $1 billion. By October 16 the proposed spin-off was shelved.

On August 14 of 2006, HealthSouth again announced it was planning to either spin-off or sell its 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. In March 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.

A New Company

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.[9]

Executive Management

SCA has a total of five executive officers. [10]

SCA Today

Health Inventures Acquisition

In June 2013, SCA acquired Health Inventures, a national surgical and physician services company.[11]

Initial Public Offering

In November 2013, SCA completed its initial public offering of shares of its common stock. The shares are listed on the NASDAQ Global Select Market and trade under the symbol "SCAI".[12] At this time, SCA also changed the company's headquarter office location to Deerfield, Illinois.[13]

References

  1. ↑ http://www.sec.gov/Archives/edgar/data/1411574/000119312513473277/0001193125-13-473277.txt
  2. ↑ "SCAI 2013 Form 10-K". www.sec.gov. SEC. Retrieved 2 July 2014.
  3. ↑ "SCAI 2013 Form 10-K". www.sec.gov. SEC.gov. Retrieved 2 July 2014.
  4. ↑ http://investor.healthsouth.com/releasedetail.cfm?ReleaseID=361680
  5. ↑ http://www.avondalepartnersllc.com/people/joel-c-gordon/. Missing or empty |title= (help)
  6. ↑ Nashville Post http://nashvillepost.com/news/2007/5/18/nashville_now_and_then_endings_and_beginnings. Missing or empty |title= (help)
  7. ↑ "Surgical Care Affiliates Inc · 10-Q · For 6/30/95". SEC Info. Retrieved 25 March 2014.
  8. ↑ "OHL Board of Directors". OHL. Retrieved 25 March 2014.
  9. ↑ http://www.tpg.com/images/portfolio/pages/sca.html?TB_iframe=1&width=550&height=325&modal=1
  10. ↑ Executive, Officers. "Form 10-K". www.edgar.org. Edgar.gov. Retrieved 23 December 2014.
  11. ↑ Miller, Laura. "Surgical Care Affiliates Acquires Health Inventures". Becker's ASC Review.
  12. ↑ "Surgical Care Affiliates Announces Closing of Its Initial Public Offering of Common Stock". NASDAQ OMX.
  13. ↑ "FORM S-1 Registration Statement". www.sec.gov. EDGAR. Retrieved 18 June 2014.

External links