SurgNet Health Partners Inc., a Nashville-based ambulatory surgery center (ASC) development and management company, has acquired Tuscaloosa Endoscopy Center, a provider of gastrointestinal diagnostic and therapeutic endoscopic procedures in Alabama.
The center, which was established 40 years ago, is led by board-certified gastroenterologists Dr. AB Reddy, Dr. Rekha Khurana and Dr. Kartika Reddy.
“We could not be more excited to partner with Dr. Reddy and the team at Tuscaloosa Endoscopy Center,” Chase Neal, co-founder and chief executive officer of SurgNet, said in a press release. “Dr. Reddy and his team have proudly and compassionately cared for members of the Tuscaloosa community for more than four decades, and we are honored to be able to share in the legacy he has established.”
This acquisition adds to SurgNet’s portfolio, which includes facilities in Ohio and Michigan.
Established in 2023, SurgNet announced its first two acquisitions of Executive Ambulatory Surgery Center and Lippy Surgery Center last October. Those two deals closed within 45 days of receiving funding from Fulcrum Equity Partners, Leavitt Equity Partners and Harpeth Capital, the company told ASC News.
“I’ve spent 20 years of my career in ASC development, and I’m thrilled to bring my experience back to my hometown to transform the ASC operations and management sector alongside our team and partners,” Neal said when SurgNet was first formed.
Fulcrum Equity Partners is a private equity firm with a large health care portfolio. Texas Endovascular, Avant-Garde Health, and Summit Spine and Joint Centers are a few of its other active investments.
PE firm Leavitt Equity Partners likewise has various health care platforms. Its portfolio companies include OnPoint Medical Group, The Surgicalist Group, Optimum Healthcare and Share MD.
Meanwhile, Harpeth Capital is a boutique investment bank based in Nashville that specializes in mergers and acquisitions advisory, capital raising and financial advisory services for middle market clients.
“There will be a clear distinction in ASC facilities that have and have not worked with SurgNet,” Chad Hooker, a principal with Fulcrum Equity Partners, said when the formation of SurgNet was announced in October 2023. “Chase and John enter facilities with a different intent than their competitors. Their desire to make notable change in physician and patients’ lives is evident.”
Dr. AB Reddy will remain actively involved in providing care and shaping the Tuscaloosa Endoscopy Center’s future.
“Aligning with SurgNet has been an important step in securing the future of Tuscaloosa Endoscopy Center,” Dr. Reddy said in a press release. “Not only was this the right time to explore a business relationship like this, SurgNet was the right partner. In tandem, we will work together to advance growth that furthers our commitment to clinical excellence and the highest quality of care for our community.”
