Erlanger Health System, which owns 51 percent of Plaza Surgery, G.P., is buying the remaining share.
Officials said due to declining reimbursement for services provided at the center and other negative economic factors, it has become increasingly difficult to operate the center profitably.
Officials said by Erlanger buying the center is "can take advantage of the increased reimbursement available for services performed in a hospital outpatient surgery department while improving the quality of patient care by consolidating outpatient surgical services and more efficiently coordinating inpatient and outpatient surgeries for all authority patients."
Erlanger will pay Plaza Physicians, LLC, Spine Surgery Associates, P.C., and University Surgical Associates, P.C., $850,150.
Erlanger will convert the previous center operations into a hospital outpatient surgery department on the Baroness campus and enter into a management services arrangement with a newly formed physician-owned management company to manage the department.
Plaza Surgery was developed in 1991. Currently, 50 physicians perform surgery or procedures there.
Officials said surgical volume has shown a declining trend over the last four years.
It is located on the lower level of the Plaza Medical Office Building on the Baroness Erlanger campus.