Partnerships are essential to ASC survival. Hospitals, health systems, management companies, physicians and even private equity firms are common options, but surgery centers can find fruitful relationships in unexpected places. Here are four out-of-the-ordinary partners that can prove beneficial for ASCs.
1. Academic medical centers. Academic medical centers do not necessarily have to own a stake in a surgery center to be a valuable partner. Magna Surgical Center in Chicago founded a program a bariatrics program in 2001 in partnership with the University of Illinois at Chicago. The multidisciplinary program eventually became designated as a bariatric surgery Center of Excellence. "We provide a place to have surgery, assessment by a nutritionist, referrals for psychological evaluation and most importantly provide patients the opportunity to meet with patient advocates and support groups," says Kenny Bozorgi, MD, COO and CIO of Magna Health Systems. After the initial relationship with UIC, the surgery center also began to work with Rush University Medical Center, also in Chicago, on the bariatrics program.
These larger medical centers were willing to partner with a surgery center, without a financial stake, based on the benefits the ambulatory setting could provide. Once proven to be safe and effective in the outpatient setting, bariatric procedures could move to the ASC's operating rooms, freeing up the medical center's ORs for other, more complicated cases. "There is always an opportunity to set up a comprehensive program built around a procedure or set of procedures," says Dr. Bozorgi. "This will make the center more attractive to physicians, payers and patients."
2. Hospital-employed physicians. Once Magna Surgery Center had established its bariatrics program and the program's reputation began to build. Physicians from other hospitals became interested. "For every physician and network exposed to the level of efficiency at an ASC, there is the opportunity for word to spread," says Dr. Bozorgi. Hospitals were willing to let their employed physicians take their cases to the surgery center based on its reputation and the efficiencies it offered.
3. Device companies. Surgery center leaders often have relationships with various device company representatives. These relationships can be used to expand a center's caseload. For example, Gramercy Surgery Center in New York partnered with a company that developed a shockwave therapy machine designed for podiatry procedures. The machine had a capital cost of $700,000, but the surgery center allowed the device company to simply store the machine at their center. The center paid a per-use fee each time a procedure was done using the machine. Physicians were now able to see and use a new device; the surgery center was gaining business and helping the device company do the same.
"We teamed up with reps of numerous companies," said Jeffrey Flynn, CASC, COO and administrator of Gramercy Surgery Center. "We allow them to come with us to physician offices." The reps are able to get exposure to physicians, and the surgery center is able to benefit from the use of new technology.
4. Residents. Surgery centers can also open their doors after hours to offer device companies and physicians use of available space. Gramercy Surgery Center has partnered with companies such as Smith & Nephew, Depuy Synthes and Integra to host cadaver labs and seminars. Educational programs can draw practicing physicians seeking to hone old skills or physicians in training seeking to learn new skills. "On the short term, ASCs may dismiss residents, but that is short-sighted," says Mr. Flynn. "The majority of residents I have come across stay in New York. These are our future customers. We know 75 percent of audience for one of these seminars will be residents. We would be crazy not to embrace them."