Due to the competition for ownership in the ASC market, investors should be aware of these five ownership and governance structures before securing ASC ownership, according to HealthCare Appraisers.
Here are the key insights to know:
1. Ownership sales, transfers and redemptions. Before getting involved in an ASC, investors should find out what the process is for physicians to sell their ownership units to another physician.
2. Ownership valuations policies. Investors should ask questions about how ownership unit pricing is determined based on physician liquidation and how distributions are determined.
3. Fiduciary duties of the board. Are board members restricted from serving on the boards of competing outpatient facilities, and what is the protocol for when a conflict of interest occurs?
4. Non-competes. Investors should be aware if non-competes prevent them from owning other surgery centers.