Healthcare Venture Professionals — Article Library

All entries for March 2011

ASC Joint Ventures

A pessimistic view of the world of healthcare would look like this: Hospitals, Physicians, Insurance Companies, Drug Companies and other healthcare Providers all have their own best interests at heart. They are all looking to survive and prosper in an increasingly pressurized environment even if it is at the expense of the other(s). Patients are confused and often get “lost in the shuffle”.

To the extent that this pessimistic worldview exists, the results can be growing levels of competition and mistrust between key healthcare players. From an ASC perspective, one such result may be the decision by some Physicians to invest in and utilize an ASC that does not include any formal Hospital involvement or ownership.

If it’s not obvious, Healthcare Venture Professionals does not share in any such pessimistic worldview! While there can always be legitimate market or business reasons that cause Physicians (or Hospitals) to unilaterally develop an ASC, HVP believes that a collaborative or Joint Venture (JV) approach is the preferred model in most market situations.

Where feasible, ASC JV’s can result in commensurate benefits for the Hospital, Physicians and especially for the Patient and Community in general. Physicians can benefit by the sharing of risk and start-up / capital expenses, a decrease in physician-Hospital competition and the fact that an initial ASC partnership often sets the stage for other collaborative endeavors in the future. Hospitals can strengthen relationships with key members of their Medical Staff, avoid further competition with Physicians and send a very positive message to their Community concerning this collaborative approach. Both parties can work together to collectively increase their respective market shares. The Patient and Community experience an improved method for the provision of outpatient surgical services and generally demonstrate this through a greater tendency to use the “local” facility and expression of higher levels of satisfaction with ASC services. It’s the classic “win-win” scenario.

HVP specializes in ASC’s and specifically in the planning, development and ongoing operations of Physician-Hospital Joint Ventures. If you’d like to learn more about the ASC JV approach, call us at 615-457-1848 or visit out website at www.hvpros.com.


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