"In terms of culture, and understanding the options around the big lever points that drive a culture, FMG Leading is bar none the best in my experience...it's extraordinary."
Surgical Care Affiliates (SCA) is a major national player in the ambulatory surgery industry. SCA operates over 210 surgical facilities, including surgery centers, surgical hospitals, and hospital surgery departments in 34 states. They employ approximately 5,000 teammates, and more than 7,500 physicians perform over 750,000 procedures in SCA facilities each year.
Originally the surgical division of troubled HealthSouth, SCA was spun-off in 2008 after significant operating challenges, including more than 4 straight quarters of profit decline.
Their new private equity owners, TPG, recruited the talented healthcare leader Andrew Hayek to lead and rebuild SCA. Understanding the complexity of the task before him, Andrew engaged FMG Leading to assist him in a designing and executing a healthy, sustainable turnaround.
Many of SCA’s challenges involved, or were exacerbated by issues of leader quality, clarity, and alignment.
FMG Leading helped Andrew assess senior leadership and build alignment around a new strategy and cultural norms.
We began with three clear deliverables:
(1) assessing the “pulse” of the engagement and clarity levels of leaders;
(2) working with the CEO and his senior team to clarify and align around strategy;
(3) intentionally designing SCA’s culture to support the new strategy.
Subsequent work focused on implementing SCA’s “new” culture through the creation of an internal leadership university, executing culture events like annual leadership meetings, and directly intervening to understand and improve the engagement levels of SCA’s teammates and physicians.
In the first year of SCA’s partnership with FMG Leading, leader engagement rose 49% and profits improved 11%.
During the entirety of our partnership, revenues are up from $690 million to over $2.1 billion, net income has grown from $73 million in 2008 to more than $240 million (an increase of over 250%), and the company’s Net Promoter Score has dramatically increased, from -55 to +72.
The increased management capacity of the organization, supported by their leader engagement and development work, has enabled the company to aggressively pursue the addition of new facilities, growing from 120 facilities in 2009 to over 210 facilities today. In 2015, the company was named one of Becker’s ASC Review’s “Best Places to Work in Healthcare.”
In January 2017, SCA and Optum (part of UnitedHealth Group) announced the two companies would combine.
In this agreement, SCA became part of the OptumCare platform, with Andrew Hayek taking an expanded new role as CEO of OptumCare, and the SCA leadership team continuing forward as part of the organization.
SCA is truly a story of successful, sustainable organizational change/turnaround driven by leaders and culture. They remain a FMG Leading client today.