The expansion push of Irvine’s Hoag Orthopedic Institute, the state’s largest volume provider of joint replacements for each of the past seven years, has made its way to Los Angeles County.
Hoag said last month that it had purchased Marina del Rey-based Diagnostic and Interventional Surgery Center, a physician-owned, 12,000-square-foot outpatient facility close to Cedars-Sinai Marina Del Rey Hospital.
Financial terms were undisclosed.
The Marina del Rey surgery center, founded in 2006 by a group of physicians, has grown to 30 physicians and 30 nurses and support staff.
The center performs spine, joint, foot and ankle, sports medicine, and pain management procedures.
The purchase marks the first L.A. facility for HOI.
Decade of Growth
HOI was formed a decade ago, and initially counted 38 physicians; it now has a medical staff of 300 physicians and more than 90 orthopedic specialists.
The hospital focuses on treatments of the knee, hip and spine disorders; its specialty care lines include sports medicine, orthopedic trauma and extremities care.
HOI ranked as Orange County’s No. 15 hospital by net patient revenue, according to the Business Journal’s latest listing; see the Feb. 17 print edition for more details.
The hospital’s $133.7 million in net patient revenue for the 12 months ended Sept. 30 was a 12% increase from the prior year.
HOI’s main facility is a 70-bed hospital in the Irvine Spectrum area, next to Hoag Memorial Hospital Presbyterian’s campus in the city.
It also has three ambulatory surgery centers, in Newport Beach, Mission Viejo and Orange.
HOI is a joint venture between Hoag Memorial and a group of the area’s top orthopedic physicians; the physicians own 49% of the venture.
Hoag Memorial ranks No. 2 among OC’s top hospitals, with $1.1 billion in net patient revenue last year from its Irvine and Newport Beach locations, also a 12% year-over-year increase.
Physician-Led Model
“We are excited about introducing HOI to the Los Angeles market alongside like-minded medical providers who share our entrepreneurial spirit and philosophy of value-based care with exceptional patient experience and high-quality outcomes,” Jennifer Mitzner, chief executive of the Hoag Orthopedic Institute, said last month at the time the deal was announced.
“The agreement with Hoag Orthopedic Institute was an ideal partnership for our spine and orthopedic surgeons,” said Sanjay Khurana, a spine surgeon and board member with the center.
“We are very pleased to join such a distinctive organization whose physician-led model of value-based patient care and operations has set a high bar for the betterment of patient care in all areas of orthopedics,” Khurana added.
According to an HOI spokesman, all 60 employees at the Marina del Rey surgery center are expected to remain and will be integrated into HOI’s system in coming months.
Specialty Care, Super Centers
The Marina del Ray deal marks the latest notable example of expansion for HOI.
In June, it opened a new specialty care clinic in Tustin, within the recently built, 60,000-square-foot Hoag Health Center Tustin Legacy medical office building, near the intersection of Edinger Avenue and Tustin Ranch Road.
The Tustin hub provides residents with access to general orthopedic care, as well as sports medicine, joint, spine, and hand surgery.
The new facility also features a casting suite for fracture repair, as well as on-site imaging.
“As we expand our footprint throughout Orange County, it was important to open specialty clinics in areas where residents have limited resources for their orthopedic injuries or conditions,” Mitzner, who joined HOI in 2017, said at the time.
Last month, it opened a Sports Medicine clinic at the new Hoag Health Center in Foothill Ranch. Specialized clinical services at the site in the city’s main shopping center, include the treatment and prevention of sports-related injuries, as well as concussion management, performance training and assessment, and nutrition.
Howard Fine is a reporter with sister publication Los Angeles Business Journal
