HealthSpan, the investment arm of Bon Secours, wants to take Surgery Partners private and absorb its 30-state outpatient footprint.

The deal would cement Bon Secours’ outpatient surgery strategy and add Surgery Partners' capabilities in key specialties, such as orthopedic and spinal care, cardiology, gastroenterology and ophthalmology.

HealthSpan Partners plans to fully finance the company's acquisition with cash on hand and newly borrowed funds. Following the deal's close, Surgery Partners intends to retain its name, brand and headquarters in Brentwood, Tennessee. The company will also continue to be a secular organization while complying with Bon Secours' Catholic-based core values.

Health systems are continuing to invest in outpatient surgical care, hoping to capitalize on growing patient interest and shift care into lower-cost settings.

Medical and technological advancements are making more treatments eligible in outpatient settings, which don’t require pricey inpatient expenses like room and board, round-the-clock nursing and facility overhead. Regulations have also allowed more procedures to be performed to outpatient facilities. Outpatient services now account for the majority of hospital revenues for most facility types.

Joint replacements and spinal fusions are especially lucrative procedures in healthcare, with Surgery Partners reporting a 22% increase in joint replacements alone last year. Patients like the convenience of undergoing these complex surgeries in outpatient settings, but Medicare and many commercial payers have also steered their members to these locations to cut costs.

, Bon Secours’ president and CEO, said in a press release.

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