Joyce K. (Deno) Thomas, senior vice president operations for Regent Surgical Health, says some ASCs experience significant problems due to physicians undermining their partners. She describes what physicians need to do to avoid this scenario.
Joyce Thomas: When an ASC is first opened, the [physician-owners] understand the risk if they as an individual don't make the building work and don't bring their cases. At first the overwhelming loan guarantees resting are on their shoulders and the doctors are afraid of failing. Then, about a year and a half after the grand opening, after they've had some success and distributions, they begin set their focus elsewhere and think about doing a few cases in other places because they're worried about relationships elsewhere.
That little bit of bleeding off of cases and inability to focus on doing as much work as they can in the surgery center causes the revenue to start falling. They lose focus on what they need to do for continued success, begin to think their volume isn't necessary and other physicians are doing cases and that it won't make any difference. But it does make a difference. I have seen facilities that have gone from being on top of the world with great EBITDA but within six months they trash the EBITDA because of lost focus. Volume was there but it was so easy that they forgot the commitment and hard work that got them there.
Learn more about Regent Surgical Health.
Read more insight from Joyce Thomas:
- Critical ASC Mistake: Physician-Owners Lacking Financial Understanding of Their ASC Investment
- Critical ASC Mistake: Failure to Maintain the ASC's Appearance
- Best Quality Care: Hospital or Ambulatory Surgery Center?