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    Sunday, April 28, 2024

    Backus seeking to purchase Waterford surgery center

    The William W. Backus Hospital is seeking to expand its presence on the shoreline with the acquisition of a free-standing surgery center.

    The Norwich-based hospital, part of the Hartford Health Care network, announced this week that it is seeking to purchase a majority share of Constitution Surgery Center East, which provides eye and orthopedic surgery at its 174 Cross Road offices in Waterford.

    If approved by state regulators, the surgery center would be the second Backus facility in that town, after the Backus Family Health Center on Parkway South.

    The surgery center opened in 2001 as an ophthalmic surgery center, expanding in 2011 with the addition of orthopedic surgery services, according to the center’s website.

    It is owned by 17 physicians, who would retain 49 percent ownership of the facility, while Backus would acquire a 51 percent share, according to a notice published on Thursday.

    Backus is proposing to pay $16.7 million for the center.

    Shawn Mawhiney, spokesman for Backus, said Friday that the center would be run as an equal partnership, but that current staff of the center would remain as managers.

    Officials at the surgery center did not return messages requesting comment.

    The emergence of free-standing surgery centers has often been cited by health care experts as one of the factors putting many hospitals under financial stress.

    By acquiring the Waterford center, Backus essentially would be reducing competition it faces for patients.

    Mawhiney said funds for the purchase would come from the hospital’s operating margin, which is “one of the most positive in the state.”

    For fiscal 2015, Backus ended with an operating margin of $40.9 million — 14 percent revenues over expenses.

    “When Backus has a positive operating margin, that allows us to reinvest in health care for the region,” he said.

    Mawhiney said Backus plans to file an application for approval of the purchase with the state Office of Health Care Access within the next couple of months.

    It hopes to complete the purchase by the end of this year.

    If approved, the purchase potentially would increase competition from Backus for patients in Lawrence + Memorial Hospital’s primary market.

    Mike O’Farrell, spokesman for the New London-based L+M, declined to comment directly on Backus’ plans.

    "Our continued focus right now is on providing the best care for our patients every day and working through the process to affiliate with the Yale-New Haven Health System so that we can bring more access and high-quality care to our community," he said.

    Mawhiney said the purchase will allow Backus to better coordinate care and improve patient access.

    “With most of the surgeons already on our medical staff, and many of the patients from our service area, this proposal would allow us to share best practices, establish one medical record and provide more coordinated care overall — before, during and after surgery,” he said.

    According to the surgery center's website, it currently provides ophthalmic procedures including cataract, ocular plastic, glaucoma and limited laser surgery.

    Orthopedic surgeries offered include procedures related to sports medicine, hands, spine, foot and ankle, cervical and lumbar disc, as well arthroscopic hip, ankle, shoulder and wrist surgery.

    No changes are planned in the range of services, Mawhiney said.

    j.benson@theday.com

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