Sometimes owners in a new ASC, or a mature one for that matter, want to protect what they have worked so hard to build. … the book of business of the ASC and therefore the distribution stream. They don’t recognize that a smaller piece of a bigger pie can benefit them financially. They will block the addition of new members to their center.
Continuing to grow a center that still has unused open block time is beneficial to the center particularly if you have any owners who are approaching retirement in the next 10 years. Bringing in “new blood” — younger surgeons to add volume now and plan for maintaining the success in the longer term — is good for the center.
Do the cost analysis and put it in front of the owners. What will the new specialty/physicians bring in case volume and how does that equate to revenues and net income which eventually feeds the distribution stream of the center? Do you create a bigger pie so that a smaller piece of a bigger pie benefits the existing owners, not to mention the capital infusion when a new owner buys into the center?
It sometimes takes this analysis to move protective owners who are proud of what they have built to understand the benefit of adding new owners to the mix.
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Read more insight from Dawn McLane:
– Further Clarification on CMS Waiving Separate Waiting Room Requirement for ASCs
– 3 Financial Issues to Address for De Novo ASCs
– 3 Critical De Novo ASC Mistakes
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.