Finding the Best Hospital Partner for Your ASC
While ASC growth has been on the rise over the last decade – 3,000 ASCs in the U.S. in 2000 grew to 5,300 in 2013 – growth has mostly stagnated in the last three years. “We’ve reached a level of maturity in this industry, and the downward pressure has taken us down to nearly zero growth,” said Mr. Gary.
What does this mean for the ASC industry?
Expect consolidation, said Mr. Gary. If your center does consider a partner, it’s critical that the decision is made carefully, with close consideration of the strengths and weaknesses of any potential partner, be it a national ASC company or a hospital partner.
Mr. Simmons shared what to look for in a hospital partner, lessons he said he’s learned from Regent’s 14 years in business.
First, hospital partners should allow physicians to have majority governance in the center, which gives physicians a sense of the control. This is the case even if the hospital has ownership control, which is required to leverage the higher reimbursement rates hospita-majority ownership brings.
The hospital should also be willing to have its CEO and CFO sit on the board of directors. This helps them to better understand and support the center, which will be important for its success.
© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.
New from Becker's ASC Review
9 recently opened or expanded ASCsRead Now
- Online Pre-Admission: Using Cloud-Based Technology to Maximize Productivity and Convenience
- ASC infection prevention for soft surface fabrics: Establishing a new standard of care
- 25 highest-paid physician specialties
- OR optimization: How does instrumentation fit in?
- Self-auditing in healthcare business offices: 3 tips