Joyce K. (Deno) Thomas, senior vice president operations for Regent Surgical Health, says some physician-owners of ASCs view their ASC as a bank and use it as such. She describes what ASCs need to do to avoid this scenario.
Joyce Thomas: Although the exception rather than the rule, some physician partners look at the facility as a bank they can go to and make withdrawals whenever they want. This mentality comes from the historical perspective that hospitals have made such great money, and legends about ASCs being wonderful ways to make money, that care is not taken with the finances. Partners start having grandiose thoughts of investing in various 'marketing strategies' like sports boxes at the local arena and chalking it up to advertising. Without balanced oversight to make good, prudent business decisions — the ASC has become a candy jar.
A facility needs to have monthly board meetings and have an outside accountant reviewing its financial statements monthly. At a previous surgery center I worked at, we retained an accountant because I didn't want a physician to ever come and question the veracity of the books. Every month we prepared our financial statements and sent it to the accountant for review, to make recommendations and submit a report to the board. Once a quarter with that same accounting firm, we had them come in to the center. On a quarterly rotational basis they audited the A/R cycle; accounts payable; payroll; and in the fourth quarter they handled our taxes.
As a partnership, if you have decided not to have a management company, retain a good external accounting company and pay for it. It's going to cost you thousands of dollars a year but it's well worth that peace of mind that your books are being watched. If anybody is afraid of an audit or digs their heels in and says you don't need it, then you do it twice because everyone should be willing to have their books open and be transparent.
Learn more about Regent Surgical Health.
Read more insight from Joyce Thomas:
- Critical ASC Mistake: Physician-Owners Forgetting to Prioritize the ASC
- Maximizing Board Productivity
- 4 Ways to Ensure Profitability When Adding Procedures