Surgical Alliance sells surgery center to Morphis’ NeoSpine

Email | Print By Paige Orr

10-08-2004 4:37 PM — As part of its changing focus from surgery centers to hospitals, Surgical Alliance Corp. has sold Premier Orthopaedic Surgery Center to NeoSpine, marking NeoSpine’s first acquisition.

The surgery center, located on Harding Place in the Crieve Hall area, was opened in May by Surgical Alliance in partnership with eight physicians from the 23-physician Premier Orthopaedic and Sports Medicine practice.

NeoSpine intends to partner with orthopaedic surgeons and neurosurgeons to develop and manage ambulatory spine surgery centers, MRI centers and pain management centers. Rock Morphis, the veteran health care executive who also serves as NeoSpine’s chief executive, founded the company in 2002. Morphis also has invested in and served as chairman of Surgical Alliance.

Gene Fleming, CEO of Surgical Alliance, said the company now is focused on hospital development and acquisition, not the ambulatory surgery center market.

Surgical Alliance has faced several challenges with its other asset, the 42-bed New Albany Surgical Hospital it developed outside Columbus, Ohio. The 96,000-square-foot, 42-bed hospital New Albany hospital opened Dec. 1, before the 18-month federal moratorium on newly constructed specialty hospitals went into effect. Since then, Surgical Alliance reportedly has tried to shop its 33% stake in the hospital, and the company also has been the target of legal action from physicians who had invested in the hospital.