Los Angeles, CA – La Peer Surgery Center (“La Peer” or the “Company”), a multi-specialty ambulatory surgery center (“ASC”) with a base of nearly 80 active surgeons, has completed a majority recapitalization with Surgery Partners, Inc. (NASDAQ: SGRY) (“Surgery Partners”), one of the largest and fastest growing surgical services businesses in the country with more than 180 locations in 30 states comprised of ASCs, surgical hospitals, multispecialty physician practices, and urgent care facilities. FocalPoint Securities, LLC (“FocalPoint”) served as exclusive financial advisor to the Company.
The transaction builds upon each company’s physician-centric services model. This acquisition is also consistent with Surgery Partners’ objective to increase access to high-quality care by establishing comprehensive local market presence and reinforcing national coverage for its diverse universe of payors. In particular, the acquisition of La Peer further strengthens Surgery Partners’ presence in the Los Angeles market and is expected to yield substantial benefits in partnership with its neighboring Specialty Surgical Center of Beverly Hills. Together, the facilities bring best-in-class programs including ophthalmology, gastroenterology, urology, spine, orthopedics, pain management, and facial plastics.
With coronavirus-related headlines pervading the news, exposure risk is top of mind for many. Looking ahead, even after restrictions on elective procedures are lifted and business begins returning to normal, these safety concerns are likely to persist. ASCs, with their strong track record for low infection rates, are well-positioned to see a resultant surge in demand. Beyond safety, efficiency and cost, ASCs present numerous advantages including a superior patient experience, better patient outcomes, and an improved physician experience. These many benefits have resulted in an ongoing migration of surgical procedure volume from inpatient hospitals to surgery centers.
“The challenges the pandemic presented to our current healthcare system further proved the strength of the ASC business model,” said Jennifer Baldock, EVP and Chief Administrative and Development Officer at Surgery Partners. “We are excited to enter this partnership, extending our management and support services to the La Peer network and expanding access to superior quality and cost-effective, safe sites-of-care for the Los Angeles market.”
“Our combined culture of innovation will ensure we continue to contribute to the evolution of our healthcare system. Joining the Surgery Partners platform will create substantial opportunities for existing and future physician partners,” said Dr. Babak Azzizadeh, Managing Member of La Peer. “FocalPoint provided tremendous leadership through a global pandemic and played an instrumental role in completing this important transaction.”
“Initiating impactful partnerships that benefit all stakeholders is central to our healthcare M&A practice,” said James Castro, Managing Director at FocalPoint. “Collaborating with La Peer to write the next chapter for its talented base of surgeons is immensely gratifying.”
About La Peer Surgery Center
Founded in 2004, La Peer is a leading multispecialty ambulatory surgery center based in Los Angeles, California. La Peer’s first-rate team of physicians has advanced training in the most complex surgical cases across 16 different specialty categories including gastroenterology, urology, orthopedics, ophthalmology, pain management, OB/GYN, and facial plastics. The Company’s outstanding surgical expertise and patient experience are recognized by a 98% patient satisfaction rating and surgeons who are nationally renowned experts in their respective fields. To learn more, visit www.lapeerhealth.com.
About Surgery Partners
Headquartered in Nashville, Tennessee, Surgery Partners is a leading healthcare services company with a differentiated outpatient delivery model focused on providing high quality, cost effective solutions for surgical and related ancillary care in support of both patients and physicians. Founded in 2004, Surgery Partners is one of the largest and fastest growing surgical services businesses in the country, with more than 180 locations in 30 states comprised of ASCs, surgical hospitals, multispecialty physician practices, and urgent care facilities. For more information, visit www.surgerypartners.com.
About FocalPoint Partners
FocalPoint is an independent investment bank specializing in mergers and acquisitions, private placements, financial restructurings, and special situation transactions. With offices in Los Angeles, Chicago, New York, and Shanghai, the firm serves middle-market clients throughout the U.S. and has a dedicated Healthcare practice. For more information, please visit www.focalpointllc.com and follow us on LinkedIn and Twitter.
Please contact James Castro, Managing Director, at 310-405-7090 with any questions about this transaction.