Surgery Center Best Practice: Choose a Management Company Before a Hospital Partner

According to Jon Vick, president of ASCs, Inc., the choice between partnering with a management company and a hospital doesn’t have to be a choice at all. He says the most successful ASCs are those that bring in an ASC management company to improve ASC operations and then seek out a hospital partner to take advantage of hospital contracts. He says many physicians make the mistake of going out and trying to bring in a hospital partner without first building a relationship with a management company. “Hospitals don’t value the ASC as well as the management company, and as soon as the hospital starts to manage the center, the profitability starts going downhill because they’re not used to managing this type of center,” he says. Hospitals may be used to managing hospital centers that charge a lot more and have much higher expenses, he says.

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Rachel Fields

Mr. Vick recommends ASCs first look to partner with a management company, which will likely offer a higher price for the ASC and bring expertise and experience on managing similar centers. That relationship with the management company will give the ASC more knowledge and leverage if the physician-owners choose to approach a hospital later.

Read more about ASCs, Inc.

Read more advice for ASC leaders:

–Administrator Tip: How to Get Physicians to Attend Partnership Meetings

–Becoming and Remaining Engaged: Critical to Success of Physician Partners

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