More and more, hospital systems and private entities are exploring ventures into the ASC market. Here’s what you can do to successfully navigate and flourish under an ownership change.
1. Have your house (outpatient surgery center) in order
This may sound like a given, but having clear governing documents will make an ownership transition as smooth as possible. Clearly define ownership rights, medical staff policies and procedures, and governing bylaws. Make sure you have clear financial documents ready to pass along to new ownership as well.
2. Defining fair market value
Defining the value of a surgery center depends on a number of variables. Many ASCs consult with business brokers to determine their valuation. Setting this metric can depend on the type of buyer and the type of sale.
3. Clean up your data
Accurate data reporting is crucial to the success of an ownership transition. With reimbursement policies shifting to a focus on quality metrics, it’s more important than ever to track data efficiently. What are your facility’s average operating times? What is your on-time start rate? Are you accurately tracking outcomes? Highly-detailed, accurate paperwork will help to smooth a transition and boost the value of your surgery center.
4. Other factors for success
High case volumes contribute to the value of an ASC sale as well. Often, physicians or administrators overestimate case volume, leading to a mostly-empty operating room. On average, a new ASC can bring in around 100 OR cases per month. An ASC that is bringing in even more will be valued more highly.
Administrator buy-in is another crucial factor. An ASC strategic plan should also incorporate a plan for future development. Communicate with local hospitals and healthcare facilities about plans for the development of an accountable care organization. When ACO development moves forward, your surgery center should be involved.
It’s impossible to predict ownership changes, but the ASCs that have well-documented value and clean data are the ones who will continue to thrive in spite of changes. No matter what step you are at in a transition, start the conversation about an integrated data platform. Having a data system that works for you means that you have more time to step back and build even greater value.
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