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The Affiliation of Redlands Hospital With the Surgery Center
Before 1990, Redlands Hospital desired to increase its
outpatient surgery capacity but lacked the capital resources and
experience to develop and operate its own freestanding outpatient
facility. In addition, such a facility would have been in
competition with the existing Surgery Center, and there was
concern that the Redlands community could not sustain both.
On March 1, 1990, RHS and SCA Centers entered into a
general partnership agreement to acquire jointly a 61-percent
general partnership interest in the Surgery Center.2 The
partnership is known as Redlands Ambulatory Surgery Center (the
General Partnership).
SCA Centers is a for-profit, wholly owned subsidiary of
Surgical Care Affiliates, Inc. (SCA), a publicly held corporation
based in Nashville, Tennessee, and specializing in owning and
managing ambulatory surgery centers.3 Prior to formation of the
General Partnership, neither SCA nor any of its affiliated
entities had any relationship, contractual or otherwise, with RHS
or any of its affiliated entities, or with the Surgery Center.
2 Redlands Hospital is also a signatory to the general
partnership agreement but only with respect to secs. 16 and 17 of
that agreement (regarding noncompetition and affiliated status).
3 As of 1995, SCA owned, in whole or part, and operated
approximately 40 ambulatory surgery centers throughout the United
States, some of which were owned in part by tax-exempt health
care systems.
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Last modified: May 25, 2011