Joint venture partnerships can be an effective way to build and grow a successful network of ASCs, but there are some non-negotiables that have to be met from the start.
The bedrock of successful partnerships is set up strong from the beginning with expectation setting, creating alignment between all parties and educating health systems on the differences between hospital and ASC operations, according to one executive.
In 2024, Raleigh, N.C.-based Compass Surgical Partners and Jacksonville, Fla.-based Baptist Health partnered to launch a network of ASCs in Florida. That partnership has flourished, with the two organizations most recently partnering with local physicians to operate an ASC in Jacksonville.
Scott Bacon, senior vice president of corporate development at Compass, recently connected with Becker’s to share how the company is thinking about expansion in Florida, as well as what it takes to make an ASC joint venture partnership work.
Note: Responses were lightly edited for clarity and length.
Question: Where do you see Compass continuing to grow in Florida?
Scott Bacon: We have a joint venture partnership with Baptist Health in Florida, and that’s really the cornerstone of our strategy across the state. As part of that partnership, we’re actively evaluating geographies where demand for ASCs and surgical care is real. Florida is one of those states with high population growth and good demographics, and there is an increasing need and demand for ASCs. We’re looking for the right geography within Florida, and the right patient base that’s underserved from an ASC OR capacity. We also want to build a network that really makes clinical and operational sense, not only for Baptist Health, for Compass, but the physician partners that we would align with in those geographies.
Q: What has been important to building that partnership with Baptist? What are some building blocks that ASCs and health systems need in those joint ventures?
SB: Before we get into a joint venture, we are always proactively having this conversation. We’re setting expectations for all parties and all stakeholders. First and foremost, educating the health system that we fundamentally believe that these are physician-led partnerships and ventures. If it doesn’t make sense for the physician, strategically or operationally, it’s a recipe for failure. Creating that expectation up front, not only from an economic alignment or ownership perspective, but governance and decision-making perspective as well. That’s really the bedrock of what we’ve seen to be high-performing ASC partnerships.
Another aspect is making sure there’s no misalignment between stakeholders, especially larger health systems with multiple sites of care. We want to make sure there’s no competing interest or competition for the stakeholders involved.
From the health system side of things, we need to educate them to enable the ASC partnership to be able to make decisions in a timely manner. Health systems are not known for doing that efficiently in the past. So, how do we efficiently create a decision making environment?
Lastly, it’s important to emphasize that ASCs are not hospitals. Respecting that the ASC environment is drastically different from a health system environment. Through our partnership model, we’re able to help them execute and expand that ASC service line and accelerate their ASC strategy in today’s environment.
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.