Here are three different components to take into account when deciding to sell a controlling stake, according to Thomas J. Chirillo, senior director of outpatient services and ASC development with Tenet Healthcare, in a Becker’s ASC Review report.
• Emotional. “Once you mention that word [controlling] with a surgeon, it sparks a flurry of questions.” Surgeons have to consider the time they have invested building the ASC’s business when considering selling a majority stake.
• Financial. The price offered for a significant portion, or all, of an ASC is an important factor for its sellers.
• Strategic. “The strategic reason behind a sale is to partner with an entity that can up the level of leverage [in the market].”
“Selling a minority interest centers around a turnaround element, adding physicians or bringing in a management company as an impartial partner,” said Mr. Chirillo.
Read the full report on Becker’s ASC Review.
More Articles on Transactions and Valuation Issues:
8 ASC Real Estate Transactions in 2014
5 Articles on Successful ASC Real Estate Ownership & Transactions
9 ASC Joint Venter Operating Agreement Issues That Make or Break the Partnership
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.
