Everyone in Birmingham is familiar with the HealthSouth story, the meteoric rise, followed by a devastating crash. And while it is well-known that HealthSouth has managed to regain its footing under new management, very few people are aware of the large company that was created from a piece of the rubble.
Launched in 2007 with the backing of Texas Pacific Group, a private equity firm, Birmingham-based Surgical Care Affiliates (SGA) has established itself as a significant health care provider, operating over 120 ambulatory surgical centers and hospitals nationwide.
“We have approximately 3,700 full-time employees and more than 2,000 physician partners, with centers and/or surgical hospitals in 31 states. About 180 work in the home office here in Birmingham,” says Executive Vice-President and Chief Counsel Rich Sharff.
Reconstructing a company of that size has challenges. “Anytime you carve a large business out of a company and start to operate it independently, there are a variety of hurdles, like shifting to your own IT platform and transitioning thousands of teammates from one company to another,” Sharff says. “We faced unique challenges due to HealthSouth's history, which caused many of the physicians who use and invest with us in our centers to lose trust in their corporate partner. We are still working on rebuilding that trust.”
The surgical centers and hospitals operated by SCA concentrate on short-term care and primarily provide non-emergency surgical and other procedures in several specialties, including orthopedics, ophthalmology, gastroenterology, pain management, otolaryngology, urology and gynecology. SCA hospitals are, however, staffed to perform more complex surgeries requiring an overnight stay.
“Outpatient surgery centers provide quality surgical services in a setting that, relative to the hospital setting, is more convenient to the patient and physician at a lower cost,” Sharff says. “Unlike HealthSouth, our company is able to focus solely on outpatient surgery, which allows us to help our physicians deliver care in a high-quality, cost-effective manner.
“Our goal is to be viewed as the partner of choice for outpatient surgical services, and to fulfill our mission to care for patients, serve physicians and improve health care in America. We are also focused on improving the support we provide to our existing centers and on growing through targeted acquisitions of physician-owned ASCs that can benefit from having SCA as a partner, and entering into joint ventures with health systems, like Sutter Health System in Northern California and WakeMed Health and Hospitals in North Carolina.”
Sharff, who oversees all SCA legal services, says, “With all the debate over health care reform, ambulatory surgery centers are an excellent example of what’s working well in health care. Based on 2010 national Medicare rates, ASCs can save the average patient up to 42 percent versus a hospital outpatient department, with excellent clinical outcomes.”
Sharff thinks most people in Birmingham probably don't realize the company's operations are headquartered here, but feels that will change over time. “Hopefully, the awareness is increasing,” he says. “More than 90 percent of our patients rank their experience with SCA as a nine or 10 on a scale of 1-10. And our physician partners like performing surgeries at our centers because of the outstanding clinical outcomes, professional teammates and the ease of scheduling.”
According to William Fitzpatrick, MD, medical director of SCA's Birmingham center, “We have almost 26 years of experience locally. We take care of patients from 6 months of age to 100 years and average more than 1,000 surgeries a month.
“We care for people from all over the state,” Fitzpatrick says. “Patients and surgeons utilize our facilities for many reasons – excellent clinical care and outcomes, easier access and very low infection rates compared to hospitals. And surgeons like our efficiency, as far as on-time starts with quick turnover between cases.”
Says Sharff, “We stay ahead of the competition by constantly seeking feedback from our customers – the physicians who use our centers – and acting on that feedback. Our presence reinforces the city’s already strong reputation, and enhances the national recognition Birmingham receives.”