Medical Facilities Corporation to Develop a New Ambulatory Surgery Center in Partnership with NueHealth and St. Luke's Hospital

Medical Facilities Corporation (MFC) (TSX: DR) announced that, through its MFC Nueterra Partnership, it plans to develop a new ambulatory surgery center (ASC) located at the campus of St. Luke’s Hospital in Chesterfield, Missouri. The ASC (named St. Luke’s Surgery Center of Chesterfield) will be MFC's second in the state.

The ASC will initially offer five specialties, including orthopedics, gynecology, gastrointestinal (GI), plastic surgery and general surgery. The surgery center will feature extended care rooms to accommodate outpatient surgeries such as total joint replacement of the knee and hip. 

The surgery center will feature extended care rooms to accommodate outpatient surgeries such as total joint replacement of the knee and hip. 

Thirteen local physicians have joined the development as owner/partners. Both the number of partner physicians and the specialties will likely increase before or after the new facility opens.

The ASC is targeted for a spring 2020 opening. Local architectural firm Archimages, Inc. has been engaged as the architect for the project.

The multi-specialty St. Luke’s Surgery Center of Chesterfield, while jointly owned by St. Luke’s Hospital, MFC, NueHealth and local physicians, will also be available to other physicians beyond the ownership group, based on availability. 
    
While terms of the partnership were not disclosed, the in market tuck-in opportunity is expected to be highly accretive. Growing the number of ASCs helps to further diversify MFC’s revenue base and builds an attractive network as payors push more procedures into the lower-cost ASC model.