The Eye & Ear Infirmary is a teaching hospital with three core specialties: ophthalmology, ENT and plastics. The hospital began developing multi-specialty ASCs (geared toward orthopedics and neurology, among other specialties) to generate additional revenue streams and provide physicians with equity opportunities. The Eye & Ear Infirmary sought the expertise of a third-party ASC management company in its ventures.
Mr. Cross added the healthcare industry is beginning to see much more activity geared toward hospital-ASC joint ventures. When a joint venture with a hospital and management company makes sense, the benefits abound. Hospital partners are critical in renegotiating contracts with payors, and physician-owners do not have to feel they are losing the hospital as an important referral source, he said.
Looking down the line, Mr. Cross added hospital-ASC joint ventures may become even more critical as the uncertainty over accountable care organizations begins to clear up.
Related Articles on Joint Ventures:
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7 Critical Areas of Focus for a Successful Turnaround of a Physician/Hospital Joint-Venture ASC
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.