5 Reasons to Create a Physician and Hospital Surgery Center Joint Venture

Joint venture partnerships are not for every ASC, but they have the potential to provide several benefits. According to a presentation by Regent Surgical Health, these benefits may include:

• Higher case payments for the hospital model versus the independent ASC model ($1,200-$1,700 per case for independent ASCs, versus $2,200-$3,000 per case for hospital-affiliated ASCs).
• ASC operations aligned with the Patient Protection and Affordable Care Act, and a move that is part of accountable care organizations' strategic plans.
• A hedge against shrinking surgeon reimbursements in practices and ASCs.
• A competitive advantage over independent ASCs.
• Hospitals may be more willing to share in control and profits of ASCs, especially as it is very difficult for hospitals to efficiently operate outpatient centers alone.

According to the presentation, a joint venture may be appropriate when an ASC is no longer seeing significant profit increases, or when local surgeons can form a strategic alliance with a local hospital.

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