WakeMed News Releases

March 25, 2010
RALEIGH, N.C. (March 24, 2010) – WakeMed Health & Hospitals and Surgical Care Affiliates (SCA) will enter into a formal agreement on March 31, 2010 to further enhance existing ambulatory surgery services throughout the WakeMed system.

WakeMed and SCA have been exploring a formal relationship for nearly 16 months as part of the long-term WakeMed Cary Hospital and overall WakeMed ambulatory strategy. The goal of this new partnership is to grow WakeMed’s outpatient surgery business by providing WakeMed’s surgical patients and physicians with outstanding service, including greater efficiencies, consistent practices across the system, and increased capacity for outpatient surgery throughout Wake County.

The first part of the SCA agreement involves WakeMed purchasing a controlling interest in the general partnership that operates the Blue Ridge Surgery Center located on Lake Boone Trail in Raleigh. The Blue Ridge Surgery Center is managed by SCA and features six operating rooms and one procedure room, and includes 41 physician partners and over 100 physicians who perform surgeries in numerous specialties, including Orthopaedics, ENT/Otolaryngology, Podiatry, Ophthalmology and more. The facility will now be jointly owned by WakeMed, these physician partners and SCA. This purchase provides WakeMed with significant gains in the Wake County ambulatory surgery market share and new opportunities for long-term growth.

The second part of this new relationship includes a management services agreement with SCA. Specifically, SCA will begin managing surgical services operations for WakeMed Cary Hospital and WakeMed North Healthplex Day Surgery program. SCA has a long track record of managing and operating successful surgery programs. While WakeMed has significant experience in inpatient surgery operations, SCA brings even more efficiencies and experience in the operation of outpatient surgery centers.

Cary Hospital Management Agreement:

Effective May 17, 2010, 142 WakeMed Cary Hospital Surgical Services employees will transition to working directly for SCA. In fiscal year 2009, WakeMed Cary Hospital performed a total of 14,006 surgeries,11,342 of which were outpatient. This partnership is expected to provide WakeMed with even greater opportunities for efficiencies and improved services and satisfaction for our customers.

North Healthplex Management Agreement:

At North Healthplex, Surgical Services employees will continue to work for WakeMed, with the exception of the manager. The reason North Healthplex employees will not work directly for SCA is because North Healthplex is not a stand-alone hospital, but is legally considered an extension of the Raleigh Campus. In fiscal year 2009, North Healthplex performed 4,438 surgeries, all of which were outpatient. The WakeMed Raleigh Campus surgical services are not impacted by this agreement.

“Partnering with Surgical Care Affiliates supports WakeMed’s long-term ambulatory growth strategy and will help us to continue to meet the outpatient surgery needs of this community,” explains Dr. Bill Atkinson, president & CEO. “With the purchase of Blue Ridge and the management services agreement, we are well positioned for volume growth in our ambulatory surgery program while further enhancing the service we provide to our surgical patients and physician partners.”

“We are honored to be selected to enter into this relationship with the WakeMed system”, said Andrew Hayek, president and CEO of Surgical Care Affiliates. Surgical Care Affiliates’ commitment is to bring the best practices from our surgical facility operations across the country to the WakeMed system. We believe that this relationship will enhance WakeMed’s position as the premier health system in Raleigh and further position Surgical Care Affiliates as the partner of choice for health systems and physicians in providing surgical services.

About Surgical Care Affiliates
Surgical Care Affiliates is committed to being the partner of choice for physicians, hospitals, and health systems in delivering high quality surgical services. SCA’s centers operate with outstanding clinical outcomes and patient satisfaction. SCA operates 124 ambulatory surgery centers and surgical hospitals across the country with approximately 4,000 full time teammates and approximately 2,000 physician partners across the country. For more information on SCA, visit www.scasurgery.com.

About WakeMed Health & Hospitals
WakeMed Health & Hospitals, one of the first hospital systems in the country, is a private, not-for-profit health care organization based in Raleigh, N.C. The 870-bed system comprises a network of health care facilities throughout Wake and Johnston Counties, including: a Level I Trauma Center and tertiary referral hospital and rehabilitation hospital in Raleigh, a community hospital in Cary, comprehensive outpatient centers and freestanding emergency departments in North Raleigh and Apex, seven outpatient rehabilitation sites, two skilled-nursing and outpatient facilities, a 100+-physician multispecialty practice, and home health services. The system includes accredited Chest Pain Centers and Joint Commission-certified Stroke Centers. Throughout the system, there are an additional 60 beds under construction and 41 newly approved by the state. WakeMed also provides management services for Betsy Johnson Regional Hospital in Dunn, NC. Centers of excellence include cardiac and vascular care, women’s and children’s services, physical rehab, emergency and trauma, orthopaedics, neurosciences, home care and numerous wellness and community outreach programs. WakeMed’s team of 7,750 employees, including but not limited to nurses, technologists and medical support staff, 1,000 volunteers and more than 1,000 affiliated physicians serve the residents of North Carolina using the most advanced technologies and facilities to ensure the finest in health care.

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