Surgeon-investors shouldn't assume ASC income will cover their buy-in loan, according to Partner John Dameron of Spaugh Dameron Tenny, a financial planning firm.
Mr. Dameron shared the following insight on the law firm's blog:
"Profitability of a surgery center is complex, and the forecast you're given isn't always accurate from an income standpoint. ... make sure you have enough surplus in your budget that you can cover most of the buy-in loan — maybe all [of the buy-in loan], if it's a new surgery center and isn't yet profitable — and not rely on the surgery center income."
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