Last Thursday, Dennis Martin, senior vice president of client services and network development with Health Inventures, Aric Burke, director of development at Health Inventures, and Troy Stockman, CEO of Nebraska Spine Hospital in Omaha, spoke about successful three-party joint ventures at the 9th Annual Orthopedic, Spine and Pain Management Conference in Chicago.
Mr. Martin, Mr. Burke and Mr. Stockman were involved in a joint venture between Nebraska Spine Hospital, Broomfield, Colo.-based Health Inventures and Omaha, Neb.-based Alegent Health. The created entity is called the Alegent Health Back & Spine Institute and is located in Omaha. Alegent is a nine-hospital system and part of Catholic Health Initiatives. Nebraska Spine Hospital is made up of seven fellowship-trained orthopedic spine surgeons.
Health Inventures has been developing and managing JVs between ASCs and hospital systems since 1995, and this was the company's third site within the Alegent Health system. "Our value here was really in creating a successful joint venture, as this appeared to be a complicated relationship between the physicians and the hospital," said Mr. Burke.
The team was working against an incredibly tight deadline of Dec. 31 due to healthcare reform's moratorium on physician-owned hospitals. "I think the real success story is in the parties all functioning as a team," said Mr. Burke. "In terms of putting this into context, we began discussions in early 2010 as healthcare reform was going through Washington." The joint venture was formed within four and a half months, including licensure, accreditation and Medicare certification. It was patient-ready by June 28 and ready for licensure on July 23.
Mr. Martin, Mr. Burke and Mr. Stockman described the role of each participant in the joint venture. Mr. Burke said the hospital, which owns 51 percent of the JV, adds significant value to the partnership. "We didn't have to build from scratch at a new facility," he said. "Those services offered at the hospital are services we can work with on a contractual basis." The role of physician partners, who own 44 percent of the JV, includes governance, planning for capital spending and cost control. "They're also heavily involved in operational management and clinical direction," said Mr. Stockman. Finally, Health Inventures owns a 5 percent stake in the JV and is responsible for day-to-day operations along with the development and implementation of a strategic plan.
Learn more about Health Inventures.
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Mr. Martin, Mr. Burke and Mr. Stockman were involved in a joint venture between Nebraska Spine Hospital, Broomfield, Colo.-based Health Inventures and Omaha, Neb.-based Alegent Health. The created entity is called the Alegent Health Back & Spine Institute and is located in Omaha. Alegent is a nine-hospital system and part of Catholic Health Initiatives. Nebraska Spine Hospital is made up of seven fellowship-trained orthopedic spine surgeons.
Health Inventures has been developing and managing JVs between ASCs and hospital systems since 1995, and this was the company's third site within the Alegent Health system. "Our value here was really in creating a successful joint venture, as this appeared to be a complicated relationship between the physicians and the hospital," said Mr. Burke.
The team was working against an incredibly tight deadline of Dec. 31 due to healthcare reform's moratorium on physician-owned hospitals. "I think the real success story is in the parties all functioning as a team," said Mr. Burke. "In terms of putting this into context, we began discussions in early 2010 as healthcare reform was going through Washington." The joint venture was formed within four and a half months, including licensure, accreditation and Medicare certification. It was patient-ready by June 28 and ready for licensure on July 23.
Mr. Martin, Mr. Burke and Mr. Stockman described the role of each participant in the joint venture. Mr. Burke said the hospital, which owns 51 percent of the JV, adds significant value to the partnership. "We didn't have to build from scratch at a new facility," he said. "Those services offered at the hospital are services we can work with on a contractual basis." The role of physician partners, who own 44 percent of the JV, includes governance, planning for capital spending and cost control. "They're also heavily involved in operational management and clinical direction," said Mr. Stockman. Finally, Health Inventures owns a 5 percent stake in the JV and is responsible for day-to-day operations along with the development and implementation of a strategic plan.
Learn more about Health Inventures.
Related Articles on Joint Ventures:
Insights Into Business and Financial Relationships Between Surgery Centers and Hospitals
Trends and Key Factors Driving Successful Hospital-ASC Joint Ventures
Key Issues Plaguing Physician-Hospital Joint Ventures