“The doctors should examine the experience of other physicians who have gone into joint ventures with the hospital,” he says. Surgery center leadership should ask the following questions:
• Does the hospital have a track record of successful joint ventures with physicians?
• How many other joint ventures has the hospital done with physicians?
• Are the physicians in the hospital joint ventures happy?
• Have physician distributions increased in those joint ventures?
Unsuccessful joint ventures obviously raise a red flag, but Mr. Vick says a complete lack of joint ventures is also a troubling sign. “That would show that they have no experience,” he says. “You don’t want to be the guinea pig with a hospital that’s never done a joint venture with a group of physicians.” He says if the hospital has never pursued a joint venture before, the administration may have an ulterior motive — removing the surgery center as a competitor, for example.
Related Articles From ASCs Inc.:
Physician-Owned Surgery Center Seeks Strong Hospital Partner: 7 Factors to Consider Before Pursuing a Joint Venture
5 Points on Calculating Impact of Out-of-Network on Valuation Multiples
5 Steps Surgery Centers Should Take Before Selling to a Hospital
