As hospitals, health systems, private equity and other investment platforms shift their interest towards outpatient development, ASC leaders are developing their own carefully crafted criteria for potential joint venture partners.
Two ASC leaders recently joined Becker’s to share what they see as red flags in potential joint venture partners.
Editor’s note: Responses have been lightly edited for clarity and length.
Brian Bizub, CEO of Raleigh (N.C.) Orthopaedic Clinic: In evaluating a joint venture partner for an ASC, it is essential to ensure alignment across key areas including operations, clinical standards, regulatory compliance, physician engagement and organizational culture. The ideal partner should be financially stable and oriented toward long-term value creation and not directly focused on short-term gains. With value-based care continuing to shape the ASC landscape, transparency is critical; not only in case volumes and pricing, but also in sharing financial statements and performance metrics among partners. I strongly recommend a formal due diligence process prior to entering into any partnership. As the saying goes, “it’s easier to get married than divorced.”
Ashley Hilliard, RN. Administrator of Piedmont Outpatient Surgery Center (Winston-Salem, N.C.): A red flag for me would be a misalignment of prospective goals. For example, if one party is interested in long term growth while another is more focused on short term profits, this might not be the best match for a joint venture. All parties should be on the same page in terms of goals.
