Surgery Center of the Pacific and Surgery Center of Santa Monica to Combine Operations

Sovereign Healthcare and Surgical Care Affiliates to Co-Manage. Saint John's Health Center to Further its Alignment and that of the Chan Soon-Shiong Center for Sports Science at Saint John's.

Surgery Center of the Pacific and Surgery Center of Santa Monica have executed a Letter of Intent to combine operations and will provide outpatient surgical care from one convenient location under the Surgery of the Pacific name by late 2012.

Additionally, Saint John's Health Center intends to acquire an ownership interest in Surgery Center of the Pacific to deepen physician alignment and expand its surgical offerings. Surgery Center of the Pacific will be a core facility for integrating with the recently announced Chan Soon-Shiong Center for Sports Science (CSS2) at Saint John's, which will be one of the premier orthopedic and sports medicine institutes in the world.

Already a leader in orthopedic care, Saint John's creation of CSS2 will allow the health center to fully integrate sports medicine, sports performance science, physical therapy, stem cell therapy, integrated education of surgical fellows, physical therapists and sports trainers. Clinicians of the highest caliber will provide acute care and conduct state of the art clinical trials. CSS2 will provide the highest quality of care - from treatment to rehabilitation - and will have a reputation for excellence and innovation that professional sports teams and world-class sports performance organizations will seek out.

"We are excited for this joint effort and the possibilities it offers to for both Saint John's and our new CSS2," said Lou Lazatin, President and CEO of Saint John's. "We look forward to being able to expand our surgical offerings so we can better provide for our patients. This venture is very promising for us, our physicians and especially for our patients."

Surgery Center of the Pacific is currently an affiliate of Sovereign Healthcare (Sovereign) and is owned in partnership with approximately 20 physicians. It has primarily provided orthopedic surgical services along with pain management, general surgery and podiatric surgery, in addition to other specialties. It has been open since 2007 at its Arizona Avenue location in Santa Monica.

Surgery Center of Santa Monica is currently an affiliate of Surgical Care Affiliates (SCA) and is owned in partnership with more than a dozen physicians. It operates a large multi-specialty surgery center in a premier facility at 2121 Wilshire Blvd. in Santa Monica and provides surgical services for specialties that include ophthalmology, gynecology surgery, general surgery, gastroenterology, ear nose and throat surgery and podiatric surgery, among others.


Later this year, Surgery Center of the Pacific and Surgery Center of Santa Monica plan to combine operations under the Surgery Center of the Pacific entity and name at the 2121 Wilshire Blvd. facility. Sovereign and SCA have reached an agreement to join forces and work together in the greater Santa Monica market, and this includes providing both strategic and day-to-day management services for the Surgery Center of the Pacific. Saint John's will be collaborating with both Sovereign and SCA in the development and acquisition of additional ambulatory surgery centers in the market.

"I'm proud of this announcement because it's so creative," said Jeremy Hogue, President and CEO of Sovereign. "Many times, the right thing to do for the community gets prevented because it's complex to do and there are differing interests between the physicians, the hospital and multiple management companies. We overcame that and have been able to align the interests of all parties under one umbrella - without losing the focus that it's always about patient care and service."

"This is a great opportunity for three significant healthcare providers to come together and provide high quality surgical services in Santa Monica," said Andrew Hayek, President and CEO of SCA. "We are proud to be partnering with Sovereign and Saint John's."

This partnership among physicians, Saint John's, Sovereign and SCA will benefit the community by leveraging the strengths of each of the parties.

About Saint John's Health Center
Since its founding in 1942 by the Sisters of Charity of Leavenworth, Saint John's Health Center has been providing the patients and families of Santa Monica, West Los Angeles and ocean communities with breakthrough medicine and inspired healing. Saint John's provides a spectrum of treatment and diagnostic services with distinguished areas of excellence in cancer care, spine, orthopedics, women's health, cardiac care and specialized programs such as the internationally acclaimed John Wayne Cancer Institute. Saint John's is dedicated to bringing to the community the most innovative advances in medicine and technology. For more information on Saint John's, visit www.newstjohns.org.

About Sovereign Healthcare
Sovereign is a leading operator of ambulatory surgery centers in the Southwest U.S., with a focus on Southern California and Arizona. Sovereign partners with physicians, hospitals and health systems and provides hands-on management and strategic leadership. In addition, Sovereign is involved in the management of large physician specialist practices and leads alignment initiatives for those physicians with hospitals and health systems, including service-line co-management programs among others. Sovereign's ability to provide senior-level executive management, strategic guidance and hands-on involvement has resulted in market-leading performance for its affiliated surgery centers and physicians groups. For more information on Sovereign, visit www.sovereignhealthcare.net.

About Surgical Care Affiliates
SCA partners with physicians, hospitals, and health systems to develop and implement surgical services strategies across the country. SCA operates 145 surgical facilities - including ambulatory surgery centers, surgical hospitals, and hospital surgery departments - in partnership with approximately 2,000 physicians and in affiliation with 30 not-for-profit health systems across the country. SCA's clinical systems, service line growth strategies, benchmarking processes, and efficiency programs create measurable advantage for surgical facilities - clinically, operationally, and financially. For more information on SCA, visit www.scasurgery.com.