Joe Zasa, managing partner of ASD Management, an operator of 26 ASCs throughout the United States, discusses things to know about HOPD management service organization (MSO) arrangements, an alternative for physicians considering building an ASC.
1. Viable option in CON states. "HOPD MSO arrangements are a great alternative in states where an ASC cannot be established due to CON laws," says Mr. Zasa. "They create a way for the hospital and the physicians to work together in a quasi joint arrangement. These arrangements are structured in a way to improve operations and still enhance quality of care to the patient. If structured properly, it is a true win/win for the patient, hospital and physicians."
2. HOPD MSOs are good for employed physicians. Employed physicians are a growing trend, especially among specialists. In the past, they were not allowed to invest in ASCs. But employed physicians can participate in the HOPD MSO model and align themselves further with their employer, Mr. Zasa says. "It engenders loyalty to the organization because the MSO arrangement effectively allows the physicians to take 'ownership' in their outpatient home. Good things follow."
3. HOPD MSOs can be run like an ASC. "As the consultant to the hospital, our firm is charged with operating the unit like an ASC and overseeing the MSO," Mr. Zasa says. "In order to effectively do this, we mirror many operational and financial things that are done in an ASC while incorporating the hospital standards. If the HOPD can streamline itself while maintaining superior quality of care, we have done our job. The key is to use benchmarks, set specific standards and conditions of operations, and communicate effectively with the MSO and the hospital."
4. Employees can be leased to, and not employed by, the hospital. "The typical model that we use allows the employees to be leased to the HOPD," Mr. Zasa says. "We do not want them as employees of the hospital for two reasons: 1) we want them differentiated from the hospital employees because this unit is operated differently in typically a more streamlines manner; and 2) we do not want the hospital benefits but would rather establish an equally good benefit plan plus a bonus for the employees based on meeting performance objectives. We believe that alignment of incentives is critical and effective bonus plans greatly augment meeting objectives."
ASD Management was founded in 1986 is active in turning around struggling ASCs, establishing new ASCs and HOPD MSOs and hospital-physician joint ventures. Mr. Zasa can be reached at (214) 369-2996 or learn more at www.asdmanagement.com.
1. Viable option in CON states. "HOPD MSO arrangements are a great alternative in states where an ASC cannot be established due to CON laws," says Mr. Zasa. "They create a way for the hospital and the physicians to work together in a quasi joint arrangement. These arrangements are structured in a way to improve operations and still enhance quality of care to the patient. If structured properly, it is a true win/win for the patient, hospital and physicians."
2. HOPD MSOs are good for employed physicians. Employed physicians are a growing trend, especially among specialists. In the past, they were not allowed to invest in ASCs. But employed physicians can participate in the HOPD MSO model and align themselves further with their employer, Mr. Zasa says. "It engenders loyalty to the organization because the MSO arrangement effectively allows the physicians to take 'ownership' in their outpatient home. Good things follow."
3. HOPD MSOs can be run like an ASC. "As the consultant to the hospital, our firm is charged with operating the unit like an ASC and overseeing the MSO," Mr. Zasa says. "In order to effectively do this, we mirror many operational and financial things that are done in an ASC while incorporating the hospital standards. If the HOPD can streamline itself while maintaining superior quality of care, we have done our job. The key is to use benchmarks, set specific standards and conditions of operations, and communicate effectively with the MSO and the hospital."
4. Employees can be leased to, and not employed by, the hospital. "The typical model that we use allows the employees to be leased to the HOPD," Mr. Zasa says. "We do not want them as employees of the hospital for two reasons: 1) we want them differentiated from the hospital employees because this unit is operated differently in typically a more streamlines manner; and 2) we do not want the hospital benefits but would rather establish an equally good benefit plan plus a bonus for the employees based on meeting performance objectives. We believe that alignment of incentives is critical and effective bonus plans greatly augment meeting objectives."
ASD Management was founded in 1986 is active in turning around struggling ASCs, establishing new ASCs and HOPD MSOs and hospital-physician joint ventures. Mr. Zasa can be reached at (214) 369-2996 or learn more at www.asdmanagement.com.