At the 18th Annual Ambulatory Surgery Centers Conference in Chicago on Oct. 28, Dawn McLane, RN, MSA, CASC, CNOR, regional vice president of operations for Health Inventures, discussed the problems that cause hospital/physicians surgery center joint ventures to fall apart.
She said some of the main issues that cause problems in joint ventures are:
• Scheduling of cases. Hospital administrators or physician investors may become disgruntled if certain physicians fail to bring their expected case volume to the center.
• How available funds are spent. Physicians and hospital leaders may disagree about how to spend available funds. For example, should the money be put towards physician distributions, capital expenses or investments in the facility?
Ms. McLane said that in order to preserve the peace in a joint venture, hospital leaders and physicians must focus on expectations and communication. This starts with defining a mission, vision and values. "If you don't have one, you can't define which direction you want to go," she says. Sit down with physicians and hospital leaders and carve out a five-year plan for the future.
She added that when approaching conflict, physicians and hospital administrators should prioritize clinical quality. The surgery center may be struggling financially, but those problems should take a backseat if the ASC is also reporting poor clinical outcomes and noticing issues that endanger patient safety.
She said each party should be able to take off their separate "hats" — those that they might put on at the physician practice or the hospital — and concentrate on the best interests of the ASC. "
In determining the best interests of the ASC, the physicians and hospital administrators should take some time to think about the priorities of each group involved in the surgery center. For example, patients prioritize high-quality, convenient care with cases that do not get bumped. Payors prioritize lower infection rates, better outcomes and a lower expense than the price charged at the local hospital. Hospitals are looking to keep physician relationships intact, retain revenue and use physicians as a recruitment tool for other providers. Finally, physicians want control of clinical and operational issues within the ASC as well as a supplement to their income.
She said the "perfect storm" of issues confronting ASCs — including a surgeon shortage, reductions in reimbursement and the challenge of adding new specialties — means physicians must be dedicated to the success of the joint venture. "We have to have committed physicians who are willing to take the time to be involved," she said. "This means effectively planning the business on the front end or [using] a turnaround strategy if you need it."
To that end, the ASC should track quality and financial data and use those statistics to make decisions that benefit the surgery center long-term.
Learn more about Health Inventures.
Related Articles on Joint Ventures:
How to Fix a Troubled Hospital Physician ASC Joint Venture
Central Piedmont Surgery Center to Open in North Carolina Next Week
Should You Sell Your Practice to a Hospital? 3 Issues to Consider
She said some of the main issues that cause problems in joint ventures are:
• Scheduling of cases. Hospital administrators or physician investors may become disgruntled if certain physicians fail to bring their expected case volume to the center.
• How available funds are spent. Physicians and hospital leaders may disagree about how to spend available funds. For example, should the money be put towards physician distributions, capital expenses or investments in the facility?
Ms. McLane said that in order to preserve the peace in a joint venture, hospital leaders and physicians must focus on expectations and communication. This starts with defining a mission, vision and values. "If you don't have one, you can't define which direction you want to go," she says. Sit down with physicians and hospital leaders and carve out a five-year plan for the future.
She added that when approaching conflict, physicians and hospital administrators should prioritize clinical quality. The surgery center may be struggling financially, but those problems should take a backseat if the ASC is also reporting poor clinical outcomes and noticing issues that endanger patient safety.
She said each party should be able to take off their separate "hats" — those that they might put on at the physician practice or the hospital — and concentrate on the best interests of the ASC. "
In determining the best interests of the ASC, the physicians and hospital administrators should take some time to think about the priorities of each group involved in the surgery center. For example, patients prioritize high-quality, convenient care with cases that do not get bumped. Payors prioritize lower infection rates, better outcomes and a lower expense than the price charged at the local hospital. Hospitals are looking to keep physician relationships intact, retain revenue and use physicians as a recruitment tool for other providers. Finally, physicians want control of clinical and operational issues within the ASC as well as a supplement to their income.
She said the "perfect storm" of issues confronting ASCs — including a surgeon shortage, reductions in reimbursement and the challenge of adding new specialties — means physicians must be dedicated to the success of the joint venture. "We have to have committed physicians who are willing to take the time to be involved," she said. "This means effectively planning the business on the front end or [using] a turnaround strategy if you need it."
To that end, the ASC should track quality and financial data and use those statistics to make decisions that benefit the surgery center long-term.
Learn more about Health Inventures.
Related Articles on Joint Ventures:
How to Fix a Troubled Hospital Physician ASC Joint Venture
Central Piedmont Surgery Center to Open in North Carolina Next Week
Should You Sell Your Practice to a Hospital? 3 Issues to Consider