At a Becker's 21st Annual Meeting on Oct. 23 in Chicago, David Whalen, a senior vice president with HCA Healthcare, and Jay Kreger, a vice president of development with HCA Healthcare, discussed what ASC leaders can do to attract potential hospital/health system partners.
"A health system will not contemplate the day-to-day. They are looking at the big picture," said Mr. Whalen. "A health system is looking to build relationships with physicians."
To attract a solid hospital or health system partner ASC leaders must take several steps including:
• Maximize value. "Look at your operating expenses. How can you drive down your costs and thus drive up your revenues?" said Mr. Kreger.
• Clean financial house. Ensure than the ASCs accounting and financial reporting is clean, accurate and up-to-date.
• Maintain facility and equipment. ASC leaders may not want to increase debt, but it is necessary to invest in facility and equipment maintenance. Poor maintenance will impact valuation and potential partner perception.
After achieving the highest possible value, evaluate potential hospital and health system partners. Sign a letter of intent with the partner that will add the most strategic value to the ASC. "Take the letter of intent seriously," said Mr. Whalen. "From that point forward, we [a health system] will assume the transaction will take place."
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"A health system will not contemplate the day-to-day. They are looking at the big picture," said Mr. Whalen. "A health system is looking to build relationships with physicians."
To attract a solid hospital or health system partner ASC leaders must take several steps including:
• Maximize value. "Look at your operating expenses. How can you drive down your costs and thus drive up your revenues?" said Mr. Kreger.
• Clean financial house. Ensure than the ASCs accounting and financial reporting is clean, accurate and up-to-date.
• Maintain facility and equipment. ASC leaders may not want to increase debt, but it is necessary to invest in facility and equipment maintenance. Poor maintenance will impact valuation and potential partner perception.
After achieving the highest possible value, evaluate potential hospital and health system partners. Sign a letter of intent with the partner that will add the most strategic value to the ASC. "Take the letter of intent seriously," said Mr. Whalen. "From that point forward, we [a health system] will assume the transaction will take place."
More articles on transactions and valuation issues:
USC affiliates with SCA
Should you sell your ASC? 17 questions to ask
Bradley Hospital opens ASC