Healthcare Venture Professionals — Article Library

Feasibility Analysis for ASC's

If you’re thinking about creating an ambulatory surgery center in your community, the critical first step is to formally determine its feasibility. The performance of a comprehensive and objective Market Feasibility Analysis should be at the forefront of your initial ASC planning and development efforts.

A thorough and professionally conducted Feasibility Analysis should answer the key financial and qualitative questions related to the potential for a successful ASC venture. If you proceed with ASC development, the Feasibility Analysis then serves as a blueprint for subsequent business planning and eventual business success. For these and other important reasons, you should be hesitant to engage any Company or Consultant who promises the quickest or cheapest approach to the conducting of the Feasibility Analysis. Too many key decisions affecting the future of your ASC project will ride on the results to run the risk of basing such decisions on factors primarily related to timing or pricing of the Analysis.

Healthcare Venture Professionals specializes in ASC’s and has performed numerous ASC- specific Feasibility Analyses over the past few years. This experience allows us to provide you with the most comprehensive Analysis available at what we believe to be an extremely reasonable price. We’ll also agree on a timeframe for completion of the Analysis which permits a thorough consideration of all key factors yet meets your need for a timely completion of this important phase of the ASC planning process.

We’ll define total Project capital costs and prepare a 5 year set of pro forma financial and statistical statements for the ASC which include all projected case volumes, revenues and operating expenses. We’ll survey and meet with all involved Physicians and Hospital representatives to mutually develop the assumptions being used to prepare the pro forma statements. We’ll work with an Architect to initially define the facility size and scope and with Legal Counsel to consider initial corporate structure and related legal matters. In summary, we’ll work participatively with all key players to make sure that we’ve conducted a thorough and exhaustive Feasibility Analysis for the contemplated ASC.

You can learn more about HVP’s approach to the ASC Feasibility Analysis by visiting our website at www.hvpros.com. Or, give us a call at 615-457-1848-we’d love to talk with you personally about this important subject.


Surgery Center Management

Healthcare Venture Professionals is a great source for either long-term management or interim / turnaround management for your Ambulatory Surgery Center (ASC). Our ability to provide you strong and stable on-site leadership can be of tremendous value if your existing ASC is going through a leadership transition or if you’re planning a new Surgery Center.

HVP attracts experienced ASC Executives for you to consider. We then provide your choice of Executives with ongoing direct guidance and support using the full gamut of HVP consultative resources for Surgery Centers.

HVP routinely provides all types of professional services to Surgery Centers. If it’s ongoing management your need, HVP has the time and talent necessary to assist you in optimizing the performance of your ASC. Since we specialize in ASC’s, HVP knows how to prevent or deal with problems your ASC may be facing. Of greater importance, as your manager we can use the expertise and experience of HVP to identify opportunities for your ASC to further grow and prosper.

There’s another important consideration when you look at professional ASC management. Unlike most other Companies, we don’t require an equity stake in your ASC unless you decide that you’d like HVP to participate in such ownership. This important choice is yours. In either case, a relationship with HVP will result in the finest professional leadership for your ASC.

Take a look at the “Client Testimonials” on our website at www.hvpros.com. You’ll see our Clients attest to the quality of ongoing management and support services we’ve provided to them. Or, give us a call at 615-457-1848. We’d enjoy an opportunity to talk with you directly about the numerous ways that HVP can be of assistance to you and your ASC.


G.I. / Endoscopy Centers - A Single Specialty Joint Venture Opportunity?

Driven by a rapidly-aging and better-informed population, together with expanded reimbursement (e.g., Medicare payment for screening colonoscopies), the demand for endoscopic procedures continues to increase dramatically. Current estimates show between 14 and 15 million outpatient endoscopic procedures being performed in the U.S. on an annual basis. Some experts predict that this volume will continue to increase at an annual rate of 20% to 30%.

While a majority (75% to 85%) of outpatient endoscopy is still being performed in a Hospital-based setting, there is a growing trend for such procedures to move to a freestanding/ambulatory care or office-based setting. This creates an excellent opportunity for Physicians and Hospitals to collaborate by creating a formal business Partnership to provide outpatient Endoscopy through a G.I. Center Joint Venture (JV).

Several immediate questions may come to mind: From a Hospital perspective, why not leave G.I. procedures where they are (i.e., do nothing) or build our own outpatient facility? From a Physician perspective, why not build our own facility (either a freestanding or an Office-based center) vs. working with the Hospital? Any one of the above alternative approaches could be taken – the result being that one party (either Hospital or Physicians) will ultimately benefit at the expense of the other. Should this occur, a potentially successful Partnership opportunity may instead result in a competitive or even adversarial relationship between parties.

The underlying theory behind a Physician-Hospital Joint Ventured G.I. Center is that both parties want to collaborate as a way to further strengthen traditional relationships.

Benefits to both Physician and Hospital under this scenario include proportionately sharing in construction/capital costs and financial risks; on the “up side”, the JV Partners share the potential improved financial result due to the increased efficiency and effectiveness a freestanding G.I. Center should produce. The Hospital frees up Operating or Procedure Room space which can be put to other revenue-producing purposes; the Physician gains the ability to share (based on ownership percentage) in the Facility component of Center billing as well as retaining the entire traditional Professional component. Higher quality service and enhanced proficiencies should result due to the focused provision of single specialty services in a higher volume fashion. Physicians also become more productive under this scenario and gain valuable schedule time to devote to additional professional/income growth or to personal activities.

The Patient’s perspective regarding a freestanding G.I. Center JV is clear: a needed service is received in a more efficient, effective and lower cost setting; lag time between scheduling and procedure performance is much less; the freestanding Center should be more convenient, comfortable and accessible (vs. a Hospital setting) due to its design and location. The Patient is ultimately much more satisfied as is typically reflected in Patient Satisfaction scores for freestanding Centers. The Community in general is also more satisfied and supportive of this collaborative approach when compared with the alternative competitive/adversarial relationship between Hospital and Physicians.

HVP is also hearing another more recent question: Haven’t the recent changes to Medicare ASC facility reimbursement for G.I. procedures made it very difficulty to have a successful freestanding G.I./Endoscopy Joint Venture? Clearly, G.I. is the Specialty being “hit” the hardest by the new Medicare payment system that began a 4 year phase-in period in 2008. Estimates are that Medicare G.I. reimbursement to ASC’s will decrease, on average, by 14% to 17% over this 4 year period. This is not surprising since this is where (along with Ophthalmology and Pain Management) Medicare spends most of its freestanding ASC dollars. Despite these significant payment decreases, HVP believes that a freestanding G.I./Endoscopy Center can still do well under the new Medicare system. The key to this success will be even greater attention to thorough business planning, effective facility design and excellent management leading to the achievement of all possible operational efficiencies.

The Hospital-Physician Joint Ventured G.I. Center may present a special opportunity. When properly developed and managed, the Center can offer services in a manner that emphasizes high quality, low costs and exceptional Patient satisfaction. Physicians, Hospital and Patient all stand to benefit greatly under this collaborative approach.

Healthcare Venture Professionals (HVP) can help Physicians or Hospitals get started with developing and operating a G.I./Endoscopy Center Joint Venture. To request more information, contact HVP at 615-457-1848 or visit our website at www.hvpros.com.


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