Crescent City Surgical Centre Completes Minority Recapitalization with LCMC HealthHow GulfStar helped to bring two like-minded health care innovators together
Frustrated by a health care system that was forcing them to work inefficiently, three skilled surgeons came together in 2011 and did something about it. They designed and built the hospital of their dreams, a facility focused on the needs of patients and surgeons rather than bureaucracy. In short order, their Crescent City Surgical Centre became not only a center of excellence for certain medical specialties, but a hospital of choice for patients in the New Orleans area.
Beyond impressive medical credentials, uncanny business smarts
With proof of their new business model’s viability, the Crescent City team hoped to create similar facilities throughout Louisiana. And that’s how nationally recognized physicians Tom Lavin, Chad Millet and Najeeb Thomas, specialists in bariatrics, orthopedics and neurosurgery, respectively, came to GulfStar for advice.
“These three brilliant surgeons were committed to maintaining their doctor-owned business model because they believed it was essential for providing the highest quality of patient care,” says GulfStar Managing Director Cliff Atherton. “We had the privilege of helping them find the perfect partner to expand on their model and preserve their unique culture.”
Over the next several months, GulfStar conducted a targeted process that ultimately narrowed the field of interested parties to LCMC Health, one of the largest nonprofit health care systems in the Gulf South region.
Health care leaders on a united mission
These two organizations were a natural fit, as both were determined to improve the way health care is delivered on a larger scale. Together, they could achieve their expansion goals and at the same time, offer patients exceptional care and an overall better experience at a reasonable cost.
LCMC Health’s CEO Greg Feirn appreciated the Crescent City team’s philosophy and business strategy. By involving surgeons as well as their chief of nursing and CFO in all management decisions, Crescent City had created an environment where patients and staff alike clearly thrived. They had no tolerance for waste and made no compromises in providing patients the highest quality, most appropriate medical care.
LCMC offered to become a minority owner of Crescent City, an ideal situation for all concerned. GulfStar ensured that the deal was structured properly to protect both LCMC Health’s investment and Crescent City’s operational independence.
“GulfStar walked us through everything from the business model to the expectations of the selling company and all the intricacies of the transaction leading up to the purchase agreement,” said Crescent City Surgical Centre founding physician Najeeb Thomas, M.D. “Their professionalism and preparation allowed us to have a smooth transition once the deal was closed.”
A seamless transaction built on mutual trust and respect
“We served as advocates on Crescent City’s behalf, in concert with their attorneys, so they could continue to focus on their medical practices without distractions,” said Atherton. “On the few occasions that we saw potential roadblocks, we coordinated with Crescent City’s lawyers to resolve them quickly and proactively.”
Ultimately, though, the true test of a successful transaction is how the client feels when all is said and done. Crescent City Surgical Centre founding physician Najeeb Thomas, M.D., puts it this way:
“GulfStar did a great job navigating through some unique challenges. They understood how to value us appropriately, and with their constant guidance and expertise, I felt we were in good hands the whole way through.”