Healthcare Venture Professionals — Article Library

All entries for December 2010

HOPD (Hospital Outpatient Department) ASC's

HVP focuses on joint ventured ASC’s owned by Physicians and Hospitals together. Nevertheless, we’re becoming more involved in working with hospital-owned ASC’s operating as a formal Hospital Outpatient Department or HOPD. This includes both new ASC’s being developed as well as existing equity-based ASC’s (either Hospital or Physician-owned) being converted to HOPD status.

There are many reasons why a trend may be developing as it relates to HOPD ASC’s. These include the number of “maturing” equity-based ASC’s, changes in credit markets particularly affecting Physician investors, reimbursement, increased scrutiny of Physician ownership and several other legislative or regulatory factors. For these reasons, a well designed and professionally managed HOPD ASC may be the optimal approach in a given healthcare market.

Nevertheless, any decision to take the HOPD approach should be made in a thorough and thoughtful fashion. This is particularly true in situations where local Physicians feel that an equity-based approach is still the desired option. Both Hospital and Physician representatives must be educated about the pros and cons of alternative ASC ownership options and openly communicate about these options. Most importantly, a formal ASC Feasibility Analysis that thoroughly considers the qualitative and quantitative benefits of each Ownership approach becomes even more critical from both a Physician and Hospital perspective.

If the decision is made to go with the HOPD ASC model, the goal should then become to achieve the “best of both worlds” for both the Hospital and Physicians. In essence, this entails obtaining the benefits of a hospital-owned approach (better reimbursement and access to support resources) while operating the ASC with the efficiencies and Patient / Physician satisfaction levels normally found in a free standing setting.

As a pioneer in the HOPD ASC approach, HVP can definitely help you achieve this “best of both worlds”. We can assist you in achieving the many benefits of the hospital-owned approach while at the same time operating your ASC as if it was independently owned or free standing. Learn more about HVP and the HOPD ASC approach on our website at or call us at 615-457-1848.