Joint ventures can come in many different forms, but some models are emerging as more common than others. “The popular structure involves the development of a joint venture with a hospital, physicians and ASC company,” said Ms. Cintado. “Strange bedfellows have become common partners.”
Here are five benefits of a joint venture, either three-way or between a hospital and physicians.
• Higher in-network reimbursement
• Access to narrow networks
• Increased awareness in the community
• Clinical integration
• Physician recruitment tools
From the hospital perspective, benefits include:
• Physician alignment
• Lower costs
• Ability to capture cases being moved to the outpatient setting
• Capture higher acuity cases not being performed in the hospital
• Increased efficiencies
• A revenue generator that doesn’t not require that requires limited capital
Potential challenges include:
• Differences in strategic vision
• Hospital reluctance to allow cases to migrate to the ASC
• Physician concern in regards to hospital control
“Physicians fear that a hospital will insert itself into management,” said Mr. Richter. “In a three-way joint venture, the ASC company’s role is to handle that management.”
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Should you sell your ASC? 17 questions to ask
Bradley Hospital opens ASC
