Transaction tip of the day: planning for succession

Establishing and then operating a successful ambulatory surgery center is no mean feat. With the demands of day-to-day operations, it can be easy to overlook a viable physician succession plan.

Here are six questions for ASC physician leaders to ask when creating a succession plan, said Arthur E. Casey, CASC, senior vice president of business development for Outpatient Healthcare Strategies, in a recent Becker's ASC Review article.

•    How much notice is required before retirement?
•    How will the divestiture of ownership from a retiring physician be funded and over what length of time?
•     Where will capital to repurchase shares come from? Operating cash? A financed loan?
•    What will happen if two or more physicians retire and divest their ownership at the same time?
•    How will retiring physicians' shares be valued?
•     Will retiring physicians be allowed to sell their shares to a junior partner?

More articles on transactions and valuation issues:
Flagler Hospital to acquire St. Augustine Surgery Center
55 things to know about know about ASC company 2Q financial reports
Study questions usefulness of CON

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