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Northstar is well positioned for significant profitable growth due to:
- a strong position in the high-growth ASC industry;
- an established track record of performance;
- a compelling value proposition for physicians, payors and patients;
- a target-rich acquisition environment; and
- excellent financial characteristics.
Northstar’s growth strategy involves both organic growth and implementing a selective acquisition plan.
Organic Growth
We are pursuing a range of initiatives to increase the use of excess capacity at the Northstar ASCs by:
- implementing “best practices” of identifying, attracting and retaining quality healthcare professionals
- enhancing operating efficiencies
- implementing effective marketing; and
- negotiating insurance contracts with third-party payors.
Growth by Acquisitions
The highly fragmented United States ASC industry comprises more than 4,600 facilities nationwide, with the top seven companies representing only approximately 15% of the total market. In Texas alone, there are more than 300 licensed ASCs, more than 60 of which are located in Houston. In this fragmented environment, Northstar will initially focus on acquisitions in the Houston and Dallas ASC market. Later, we will pursue other ASC acquisition opportunities that complement our core strategy of acquiring multiple ASCs in large, attractive metropolitan areas, including Texas.
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