In a recent Becker’s ASC Review article, Vivek Taparia, director of operations with Regent Surgical Health, and John Newman, senior vice president and general counsel of Constitution Surgery Centers, discussed the pros and cons of hospital majority and minority ownership.
Minority ownership pros
• Physician control
• Room for future physician investment
• Improved market position
Minority ownership cons
• Lack of managed care contracting support
• Lack of hospital interest
Majority ownership pros
• Managed care contracting improvement
• Access to additional hospital resources
• Large capital event
Majority ownership cons
• Loss of physician autonomy
• Limited investment options
More articles on transactions and valuation issues:
St. Rose ASC to be remodeld
ASC stock report – 5 key company updates
32 ASC acquisitions in 2014
