Many ASCs are run by multigenerational teams of physicians, with different needs and priorities based on the progress of their careers.
Ker Medical, a new ASC company, has been disrupting the industry with its independent practice model. Their model integrates four or five ASCs under similar management with a board made up of the principals, which handles operations, but physicians maintain their autonomy.
John Webb, one of Ker's founders and president of MMC Capital Partners, recently discussed Ker's model and its effectiveness in managing multigenerational teams with Becker's.
Here are three notes for independent ASCs managing multigenerational physician teams:
1. Provide an exit strategy. Ker's model provides physicians with the option of an exit strategy, which is ideal for physician owners who do not want to involve large institutional management, equity or health system partners, but desire the possible retirement or exit benefits those partnerships can bring.
2. Maintain leverage. Mr. Webb said that ACSs who do not follow this model can risk losing control, especially when older physicians want to exit and younger ones want to buy in, yet neither group wants to sell the ASC. In this scenario, many ASCs turn to conventional banks, which can result in losing leverage or power to negotiate lower pricing and favorable terms and conditions.
3. Create credit facilities. Mr. Webb also said that he has noticed a number of cases where younger physicians want to buy into an ASC but do not have the capital. Ker puts together credit facilities, often funded by the ASC partners, to recruit a new physician. The money they put in can then go toward older physicians nearing retirement.