Hospital Executive Joint Venture

Joint Venture Cases

Hospital-Physician Joint Venture Surgery Centers

Case Study: Midwest City, OK

History

The physician partners of the 3 OR multi-specialty ASC had several partners that were not operating at the surgery center, and a hospital partner that was providing no leadership. Financial performance had been slipping from the previous levels over the past several years.

The surgeon partners were looking for stability in an increasingly competitive local environment. They also needed assistance recruiting new physicians, growing case volume and negotiating contracts. Realizing that they could not do that on their own, they entered in to a joint venture with a new hospital partner and ASCOA. The partners felt that stability could be secured with a hospital partner that wanted them to succeed, and a management company that could provide resources to enhance the strong leadership already in place, as well as expertise in recruitment and growth.

ASCOA

With a proven track record of ASC turnarounds, Health Management Associates and ASCOA partnered with the existing surgeons and assumed management for the Center in March 2012.

An active recruiting effort is expanding the geographic reach of the center, and recruiting surgeons that had never considered the center before. Several new surgeons have started the partnership process, and are now bringing their cases to the ASC.

Contract negotiation utilizing the combined efforts of the negotiating teams of the hospital and ASCOA has seen willingness of the commercial payers to increase reimbursement on the procedures being done in the center.

An unexpected challenge developed in July 2012 when an eight-inch water main broke under the OR floor, flooding the center. The ASCOA Operations team and Center Administrator expertly handled the effects of the extensive damage, and navigated a tedious rebuilding process. The center reopened in November, 2012.

Outcomes

Physician partner involvement has increased dramatically. Monthly partner meetings include all parties and help physician partners understand the issues facing the center, and become actively engaged in solving them.

Immediate revenue increases resulted from identifying and correcting billing issues, and by implementing strict case costing procedures. The monthly partner meetings include case costing reviews which has resulted in the development of a more strategic and profitable case mix.

Additional revenue increases are anticipated as recruitment and subsequent case volume increases continue.