More ambulatory surgery centers are affiliating with hospitals today, and the trend is just beginning according to a panel at the Becker’s 21st Annual Ambulatory Surgery Centers Conference in Chicago on Oct. 24.
The panel, titled “Hospital Physician Affiliations,” included Administrator of Fremont Health Surgery Center Tracy Hoeft-Hoffman, Administrative Director of The Reading Hospital SurgiCenter at Spring Ridge Pamela Ertel and Robert Zasa, Managing Partner and Founder of ASD Management. The panel was moderated by Becker’s Hospital Review Managing Editor Molly Gamble.
Each panelist discussed their partnerships and affiliations with hospital and health systems, and the different combinations available for ASCs. “One of the positives of having a hospital partner is the loans are better, terms are better and if the hospital’s primary care network is good you can get tied into that,” said Mr. Zasa. “The other benefit is the issue related to managed care. They have more leverage than freestanding centers. The negatives are processes to make decisions are longer at the hospitals and they have to protect their bottom line, so some specialties or physicians will be unable to use the center.”
Ms. Hoeft-Hoffman’s physician owners tasked her with seeking out options for hospital affiliation. She did her research and found the hospital was only interested in a 100 percent acquisition.
“I outlined the steps for the physicians if they wanted to go through with the acquisition,” she said. “We went through the steps for the purchasing agreement. We had to follow an order; we couldn’t just go from a meeting to a purchasing agreement. We had a valuation done and I was involved in that. The physicians wanted to have a deal while there was still a good product to do something with.”
Most of the physicians in her center were onboard for the acquisition, but there was one orthopedic group that stopped taking cases to the center as a result of the move. Physicians are an important aspect of any surgery center, and there are fewer available as healthcare providers consolidate.
“The fact that physician practices are being acquired creates angst,” said Ms. Ertel. “As the surgery volume increases we are all vying for that product. The hospital is trying to fill their operating rooms, and you have to be honest with everyone on how to give a little and take a little from the hospital.”
Key concepts the panelists discussed for a successful joint venture or partnership with a hospital include:
Honesty: Breaking trust will create a hostile relationship.
Transparency: Make sure everyone is on the same page and knows what the other side wants.
Education: Discuss the value of the ASC physician and management expertise to optimize the partnership.
The panel, titled “Hospital Physician Affiliations,” included Administrator of Fremont Health Surgery Center Tracy Hoeft-Hoffman, Administrative Director of The Reading Hospital SurgiCenter at Spring Ridge Pamela Ertel and Robert Zasa, Managing Partner and Founder of ASD Management. The panel was moderated by Becker’s Hospital Review Managing Editor Molly Gamble.
Each panelist discussed their partnerships and affiliations with hospital and health systems, and the different combinations available for ASCs. “One of the positives of having a hospital partner is the loans are better, terms are better and if the hospital’s primary care network is good you can get tied into that,” said Mr. Zasa. “The other benefit is the issue related to managed care. They have more leverage than freestanding centers. The negatives are processes to make decisions are longer at the hospitals and they have to protect their bottom line, so some specialties or physicians will be unable to use the center.”
Ms. Hoeft-Hoffman’s physician owners tasked her with seeking out options for hospital affiliation. She did her research and found the hospital was only interested in a 100 percent acquisition.
“I outlined the steps for the physicians if they wanted to go through with the acquisition,” she said. “We went through the steps for the purchasing agreement. We had to follow an order; we couldn’t just go from a meeting to a purchasing agreement. We had a valuation done and I was involved in that. The physicians wanted to have a deal while there was still a good product to do something with.”
Most of the physicians in her center were onboard for the acquisition, but there was one orthopedic group that stopped taking cases to the center as a result of the move. Physicians are an important aspect of any surgery center, and there are fewer available as healthcare providers consolidate.
“The fact that physician practices are being acquired creates angst,” said Ms. Ertel. “As the surgery volume increases we are all vying for that product. The hospital is trying to fill their operating rooms, and you have to be honest with everyone on how to give a little and take a little from the hospital.”
Key concepts the panelists discussed for a successful joint venture or partnership with a hospital include:
Honesty: Breaking trust will create a hostile relationship.
Transparency: Make sure everyone is on the same page and knows what the other side wants.
Education: Discuss the value of the ASC physician and management expertise to optimize the partnership.