14 ASC joint venture benefits & challenges

At the Becker's 21st Annual Meeting in Chicago on Oct. 23, Monica Cintado, a senior vice president with United Surgical Partners International, and Patrick Richter, vice president of business development with USPI, discussed the potential benefits and challenges ambulatory surgery center leaders can experience after joint venturing with a hospital, health system and/or ASC company.

Joint ventures can come in many different forms, but some models are emerging as more common than others. "The popular structure involves the development of a joint venture with a hospital, physicians and ASC company," said Ms. Cintado. "Strange bedfellows have become common partners."

Here are five benefits of a joint venture, either three-way or between a hospital and physicians.

•    Higher in-network reimbursement
•    Access to narrow networks
•    Increased awareness in the community
•    Clinical integration
•    Physician recruitment tools

From the hospital perspective, benefits include:

•    Physician alignment
•    Lower costs
•    Ability to capture cases being moved to the outpatient setting
•    Capture higher acuity cases not being performed in the hospital
•    Increased efficiencies
•    A revenue generator that doesn't not require that requires limited capital

Potential challenges include:

•    Differences in strategic vision
•    Hospital reluctance to allow cases to migrate to the ASC
•    Physician concern in regards to hospital control

"Physicians fear that a hospital will insert itself into management," said Mr. Richter. "In a three-way joint venture, the ASC company's role is to handle that management."

More articles on transactions and valuation issues:
USC affiliates with SCA
Should you sell your ASC? 17 questions to ask
Bradley Hospital opens ASC

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers

Featured Podcast