William Kennedy, senior vice president of business development for NovaMed in Chicago, discusses five key factors to consider when selling part of your ASC.
1. Have a variety of leading surgeons. Buyers are impressed with the depth of an ASC's surgical team. "You want to have more than just one or two surgeons who make or break the center," Mr. Kennedy says.
2. Keep adding younger surgeons. Young blood means your center has a future. One way of adding it is for physician-investors to bring junior partners into their practices. "This involves an extensive outreach process that takes a great deal planning," Mr. Kennedy says.
3. Bring in surgeons from different practices. You don't want your ASC to be seen as an insiders' club, but as a facility that any qualified physician can join. "You want to be perceived as a community-based service," Mr. Kennedy says.
4. Have a strict non-compete clause. Establish a reasonable radius of miles for the clause to cover. "You have to be tough," Mr. Kennedy says.
5. Create a strong in-network presence. Develop contracts with as many major insurers as possible. "Out-of-network status is facing in many markets," Mr. Kennedy says.
6. Demonstrate growth potential. "Buyers are looking for centers that can keep growing," Mr. Kennedy says. "You don’t want to have squeezed all the juice out of the lemon." In addition to taking on younger doctors, this means finding new procedures and even new specialties.
Learn more about NovaMed.
Read more insight from the leadership of NovaMed:
- 4 Solid Business Ideas to Improve Your ASC's Profitability
- 8 Things an ASC Can Do to Improve Operations and Drive Stronger Results
- 10 Qualities That Make a Great ASC Administrator