Surgical Care Affiliates

Last updated

SCA Health
Company type Subsidiary of Optum
IndustryHealthcare
PredecessorSurgical Care Affiliates (1982 to 1995)
HealthSouth Outpatient Surgery Division (1995 to 2007)
Founded2007
Headquarters Birmingham, Alabama, [1]
Number of locations
300+
Key people
Jason Strauss, CEO
Products Ambulatory Surgery Centers and Surgical Hospitals
RevenueIncrease2.svg $3.0 billion USD (2022)
Number of employees
10,000+ (2022)
Parent Optum
Website sca.health

SCA Health (SCA), is based in Birmingham, Alabama, with a network of 300+ ambulatory surgery centers (ASCs) in 35 states performing 1 million procedures a year. [2] Since March 2017, the company is part of Optum. [3]

Contents

SCA creates partnerships between health plans, physician groups, and health systems, to acquire, develop and optimize surgical facilities. [4] SCA's affiliated physicians provide a range of surgical services. [5]

History

Surgical Care Affiliates was founded in 1982 by Joel Gordon in Nashville, Tennessee. Gordon had previously founded General Care Corp (NYSE: GCE) in 1969, a hospital company that was sold to Hospital Corporation of America (“HCA”) in 1980. [6] Subsequent to selling General Care Corp to HCA, Gordon partnered with Andrew “Woody” Miller, an HCA executive, [7] and Jack Massey, a co-founder of HCA and American venture capitalist, to launch SCA. [8] SCA raised capital by listing shares on the New York Stock Exchange and used the proceeds to acquire existing surgery centers and build new surgery centers, mostly in the southeast. [9] From 1982 to 1995, SCA grew to approximately 67 facilities, with Ken Melkus serving as the CEO for most of that time. [10]

HealthSouth acquired SCA in October 1995, and closed the Nashville office after consolidating it into HealthSouth's surgery division office in Birmingham, Alabama. [11] The acquisition, along with several previous surgery center company acquisitions, made HealthSouth the nation's largest provider of outpatient surgery with a total of 126 surgery centers. [12] HealthSouth acquired other surgery center companies, including ASC Network Corp and National Surgery Centers, and independent facilities during this period. [12] In March 2007, HealthSouth announced that it would sell its surgery center division to TPG Capital (TPG), a large private equity firm. [13]

In June 2007, TPG Capital acquired the assets of HealthSouth’s surgery division, effectively forming SCA as a new, stand-alone company. [13] The company was named Surgical Care Affiliates, in recognition of the original SCA, and headquartered in Birmingham. [14] In May 2008, Andrew Hayek was hired as president and chief executive officer. [15] [16] Hayek had previously been president of a division of DaVita Healthcare Partners (now Optum) and had been president and chief operating officer of Alliance Healthcare Services. [4]

In October 2013, the company issued an IPO. [17]

In January 2021, the company was indicted by a federal grand jury on charges of labor market collusion. According to the Department of Justice, "Beginning at least as early as May 2010 and continuing until at least as late as October 2017, SCA conspired with a company based in Texas to allocate senior-level employees by agreeing not to solicit each other’s senior-level employees. Beginning at least as early as February 2012 and continuing until at least as late as July 2017, SCA separately conspired with a company based in Colorado to allocate senior-level employees through a similar non-solicitation agreement." [18] In July 2021, the Colorado company was identified by the Department of Justice as DaVita Inc. [19]

In May 2022, the company rebranded from Surgical Care Affiliates to SCA Health.

Partnerships

Texas Health Resources

In October 2012, SCA partnered with Texas Health Resources leadership to design and execute a surgical strategy in the Dallas / Fort Worth market. Together with community surgeons, the partnership has grown from two facilities to 25 facilities.

Monarch Healthcare

SCA is partnered with Monarch HealthCare, Orange County’s largest association of physicians in private practice. [20] In 2011, Monarch HealthCare was acquired by Optum, UnitedHealth’s health services division. [21] In February 2013, SCA entered into a joint venture partnership with Memorial Care Medical Foundation and Monarch HealthCare to optimize surgery in Southern California; the partnership now has 9 ASCs. [22]

Advocate Health Care

In 2015, Advocate Health Care and SCA entered a joint venture to acquire and develop a surgery center network. Advocate Health Care was the largest fully integrated healthcare delivery system in the state of Illinois; the partnership currently has a total portfolio of 15 surgery centers, with more in development. [23]

SwiftPath

In May 2016, SCA made an investment in SwiftPath, LLC, which develops evidence-based, rapid recovery protocols that enable surgeons to perform hip and knee replacements in an outpatient setting. [24] The SwiftPath platform includes patient engagement and education, patient selection criteria, and peer-reviewed surgical techniques. [25] SCA currently has 43 outpatient facilities performing total joint replacements. [26]

One World Surgery

SCA is the foundational corporate partner to the nonprofit One World Surgery. [27] One World Surgery funds and operates an ambulatory surgery center located near Tegucigalpa, Honduras, on the grounds of a 2,000 acre orphanage (part of the Nuestros Pequeños Hermanos network) with more than 500 children. [28]

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References

  1. ↑ "Contact Us". www.sca.health. January 23, 2025.
  2. ↑ "Surgical Care Affiliates". Surgical Care Affiliates.
  3. ↑ "UnitedHealth Group Commences Exchange Offer to Acquire SCA Health" (Press release). UnitedHealth Group. February 21, 2017.
  4. 1 2 "5 things to know about 5 of the biggest ASC companies in the market today: AmSurg, HCA, Surgery Partners, SCA & USPI". www.beckersasc.com. March 23, 2015.
  5. ↑ "Surgical Care Affiliates Announces Closing of Its Initial Public Offering of Common Stock and Exercise in Full of Option to Purchase Additional Shares (NASDAQ:SCAI)". Archived from the original on August 15, 2016.
  6. ↑ “Surgical Care Affiliate”. Google Finance. https://www.google.com/finance/?ei=qhKFV9HZEcyS2AarrJ3wAQ
  7. ↑ "Omen Reports". www.omenbooks.com.
  8. ↑ "1S8: Secoo Holding Ltd Stock Price Quote - Stuttgart - Bloomberg". www.bloomberg.com.
  9. ↑ "Joel C. Gordon - Avondale Partners - Avondale Partners". www.avondalepartnersllc.com.
  10. ↑ "Nashville now and then: Endings and beginnings". Nashville Post. May 18, 2007.
  11. ↑ "HealthSouth Corporation -- Company History". www.company-histories.com.
  12. 1 2 "SEC Info - Surgical Care Affiliates Inc - '10-Q' for 6/30/95". www.secinfo.com.
  13. 1 2 "About / Advisory Board - Avondale Partners - Avondale Partners". www.avondalepartnersllc.com.
  14. ↑ International Directory of Company Histories, Vol. 33. St. James Press, 2000
  15. ↑ "Andrew P Hayek". Bloomberg.
  16. ↑ "The young and the surgical". Crain's Chicago Business. September 14, 2013. Retrieved June 11, 2020.
  17. ↑ Godwin, Brent (October 30, 2013). "Shares of Surgical Care Affiliates priced at $24". Birmingham Business Journal.
  18. ↑ "Health Care Company Indicted for Labor Market Collusion". www.justice.gov. January 7, 2021. Retrieved July 15, 2021.
  19. ↑ "DaVita Inc. and Former CEO Indicted in Ongoing Investigation of Labor Market Collusion in Health Care Industry". www.justice.gov. July 15, 2021. Retrieved July 15, 2021.
  20. ↑ "Surgery Centers Play an Important Role in ACOs". www.beckersasc.com. January 10, 2011.
  21. ↑ "Who we are". www.monarchhealthcare.com.
  22. ↑ "UnitedHealth to acquire Monarch HealthCare". Modern Healthcare. August 31, 2011.
  23. ↑ "About Advocate Health Care" (PDF). www.advocatehealth.com. Archived from the original (PDF) on September 10, 2015. Retrieved January 17, 2022.
  24. ↑ "BRIEF-Surgical Care Affiliates says has invested in SwiftPath Llc". Reuters. May 16, 2016 – via www.reuters.com.
  25. ↑ "The SwiftPath Program, LLC". SwiftPath.
  26. ↑ "Surgical care" (PDF). scasurgery.com. 2016. Retrieved June 2, 2019.
  27. ↑ "Home - One World Surgery". One World Surgery.
  28. ↑ "Holy Family Surgery Center - Plastic Surgeons Walnut Creek CA". Holy Family Surgery Center.
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