As ASCs compete with hospitals for talent and resources, offering physicians ownership is one way to come out on top.
Alejandro Fernandez, CEO of San Diego-based Synergy Orthopedic Specialists, joined Becker's to discuss the importance of physician ownership stake.
Editor's note: This interview was edited lightly for length and clarity.
Question: Why is physician ownership in an ASC so important?
Alejandro Fernandez: I would say that No. 1 and foremost is that physicians should have control because of patient care. Physicians need to be in the driver's seat when it comes to being able to offer patients the best alternatives for when a surgery is needed and for that service to be provided in the location or the place of service that provides greater value. That's first and foremost.
Additionally, for physicians that are able to participate in ownership of an ASC, the ASC has become a significant part of their compensation structure. Not necessarily their salary, but just the overall money that they make. Therefore, when it comes to recruiting new talent — particularly because there's a scarcity of new physicians coming out of programs — when you are trying to recruit somebody that's going to be doing total joints or spine, being able to provide that financial opportunity for new physicians is helpful. These physicians that are coming out of training have a vehicle where somewhere along the line they'll be able to have this revenue stream due to their ownership in an ASC. This is extremely important as private practice tries to remain competitive recruiting against hospitals.
Q: And are you seeing a lot of interest by new physicians?
AF: We're recruiting in a lot of different ways. We're recruiting people coming out of fellowships. We're recruiting physicians that are in hospital systems that they're not happy with. I'm also recruiting physicians that are retiring or have done their service and their time in the Navy; with us being in San Diego, there's a big presence with the Navy and Marines. We're able to recruit physicians that are finishing their tenure with the Navy, and they are looking at an opportunity to continue. We're also looking at opportunities to acquire practices as well or merge practices.