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3 HEALTHCARE LEADERS ON WHY HEALTH SYSTEM LEADERS ARE TURNING TO AMBULATORY SURGERY CENTERS

October 2, 2019

Joe Aguilar, a partner with HMS Valuation Partners, was quoted in a Becker’s ASC Review article that ran October 2, 2019, about why health system leaders are turning to ASC’s.  Responding to the question of why hospital leaders should consider building or acquiring an ASC, Aguilar said:

“The decision to build or acquire an ASC is a function of a variety of factors. Building an ASC from the ground will enable the health system to have greater flexibility on where it is located, who are the participating physicians and basic design. Acquiring an existing ASC limits this flexibility. The health system needs to ensure that the ASC they are acquiring meets their needs in terms of facility layout and location while also meeting their expectations on the physicians who will come with. Competition with private equity and management companies also makes acquiring an ASC more challenging for the health system. The most obvious benefit of acquiring an ASC is the ability to have it up and running fast.”

“As a valuation firm, we see a number of joint ventures in this space, which mitigates some financial risk to the health system. This partnership structure increases physician buy-in; however, as partners, they share in the profits and operational decision-making. After hurdling any negative associated with partnering with physicians, the health system needs to ensure that they are compliant with the JV partnership under Stark Law and [the] Anti-Kickback Statute.”

To read the full article, click here.