Critical ASC Mistake: Not Talking to the Competition

Linda K. Peterson, MBA, CEO of Executive Solutions for Healthcare, discusses why ASCs should consider the benefits of forming a relationship with a competing ASC.

Linda Peterson: In any area in the country, you can be fierce but friendly competitors.  Creating a friendship with a competing ASC has many benefits that should not be overlooked just because the other ASC is viewed as a competitor. Developing a friendship can be useful for simple things such as if you find your ASC short an item that is needed on an emergency basis or for more significant issues such as a potential merger or sale down the road.

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Take this example: You build a new center in the area and introduce yourselves to the competing centers. If they ever are overbooked, they may ask to do a few cases at your center, or vice versa. Down the road you might ask them if there is interest in possibly merging the centers or your center buying their center (there could be many reasons for wanting to do this). Even if they are not interested in such a significant relationship, you at least have established relationships for the simple supply items or local networking.

Best case scenario: The older center in your area suddenly finds itself having to move out of its building due to reasons such as a loss of lease or because of failure to meet new Life Safety Code issues. Since you have established a relationship with the center, its physicians may talk to you as they explore their options, including a possible partnership where they bring their cases to your ASC (even if you have to add a few ORs) rather than build a new ASC. If you can work out a rewarding partnership situation, you now have one less competitor and a more profitable business, all because you maintained that relationship!

Learn more about Executive Solutions for Healthcare.

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