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Nobilis Health has acquired a 50.1 percent ownership interest in Elite Surgical Affiliates' Houston-based portfolio of three ambulatory surgery centers (ASCs) and one surgical hospital.
Nobilis has funded the acquisition purchase price of approximately $60 million through a $50 million expansion of its existing credit facility with BBVA continuing as lead arranger.
Following the deal, Nobilis will have 13 locations (nine surgical facilities and four clinics) in the Houston market. Ten of these locations will operate under in-network contracts with all of the major commercial payors, the company said.
"This acquisition represents a strategic opportunity to enhance Nobilis' in-network revenue and adds 76 physician partners to our existing network of surgeons in the Houston market," said Harry Fleming, Nobilis CEO. "This transaction is significantly larger than any of our previous acquistions and is a major stride toward the Company's goal to derive most of its revenue from in-network managed care contracts. Not only is this transaction accretive to earnings, the expanded platform of facilities and high-quality providers also enhances the Company's ability to deliver outstanding, cost-effective healthcare to our patients and communities."
Kenneth Efird, Nobilis' president, stated: "We believe the acquisition and integration of Elite will result in a series of benefits for the Nobilis system, contained in four key areas: the ability to leverage best practices from both companies and generate operational efficiencies, the opportunity to improve conversion through the substantial increase in referral-based business, the resources to expand marketing services to physicians newly aligned with our system, and the resources to further strengthen Nobilis' footprint within the Houston market."
Nobilis Health, Elite Surgical Affiliates, Acquisition, Kenneth Efird, Harry Fleming, US