Here are five things that ASC leaders have told Becker’s they look for when forging partnerships with hospitals and health systems:
1. Shared culture and values. Many ASC leaders have emphasized a need to ensure that patient care is top priority in any strategic partnership, whether with a hospital, health system, or outside investment or management group.
“As a clinician, administrator and industry consultant, private equity-acquisition groups need to keep their focus equally on three important principles for success: patient care, organizational culture and bottom-line business processes,” Robert Nelson, PA-C, former executive director of Island Eye Surgicenter in Westbury, N.Y., told Becker’s. “Neither of them should take precedence over the others. Historically, the acquiring company usually places the most emphasis on business processes and operations, resulting in a significant impact on patient care and organization culture. Yes, the merger needs to have an upside for all stakeholders. But never at the expense of patient care, patient safety and the morale of our important team members.”
2. Reimbursement rates. Financial stability and improved rates with payers are one of the central reasons that ASCs seek out partnerships with hospitals and health systems, and ASC leaders should be adequately prepared during negotiations to ensure that the hospital partnerships can provide this leverage.
“We’ve been able to get better reimbursement rates by having a hospital be the majority stakeholder,” Bruce Feldman, administrator of Eastern Orange Ambulatory Surgery Center in Cornwall, N.Y., told Becker’s. “They have a whole contracting department at their disposal. So that was one of the biggest reasons why the hospital became involved here in the first place, and the partners decided to sell their shares to the hospital.”
3. Quality enhancement through collaboration. Gina Taylor, quality and accreditation program manager at Bellaire, Texas-based Harris Health, told Becker’s that hospitals can bolster ASC quality initiatives by providing access to critical resources that independent ASCs may lack.
“We have access to resources that independent ASCs typically don’t, and we’ve been able to collaborate with different departments within the healthcare system — like pharmacy, lab teams, radiology, medical staff services and health information management,” she said. “These collaborations improve quality and patient care.”
4. Bolstered staff recruitment and retention. Some hospital-ASC partnerships may also include access to resources that can strengthen staffing and recruitment efforts, a particularly desirable facet of the relationship as many facilities face staffing shortages.
“Many physicians have the opportunity to invest and become owners, which gives them more freedom to be involved in day-to-day operations and the care they provide to patients,” Ms. Taylor said. “They are more engaged at that level.”
5. Access to new technology. Hospital or health system partnerships may offer the financial support needed to acquire and operate new technology, like surgical robots, which can be cost-prohibitive for independent centers. More than 35 ASC leaders recently highlighted the role of technology in ASCs’ future growth to Becker’s.
