Operational Considerations for Ambulatory Surgery Centers
The business of running a surgical facility is becoming more complex. A strong partner to manage and set a path into the future has never been more important than now. By having an experienced partner to handle all operational, financial, regulatory and administrative functions, the physician can concentrate on patient care.
Most physicians own one center. We own multiple centers, which allows us to take our experience from managing ASCs throughout the country and apply it to your center. We know how to control costs across the board without sacrificing quality or efficiency. We regularly benchmark your ASC against others in the NovaMed family in an effort to continuously improve the overall performance.
NovaMed's operational staff are experts in obtaining accreditations for ASCs. This process is often instrumental in obtaining additional managed care contracts.
Partnering with NovaMed will allow you to sell a portion of your potentially illiquid investment in your ASC. Many physicians have built a very valuable business out of their practice and ASC. Given the high debt loads and diminished earning potential of new physicians, obtaining value for your investment from within the physician community is difficult. We have the capital resources and strength to pay you what your center is worth. We also provide the experience to grow your center.
Many physicians have a disproportionate share of their assets tied up in their practice. The sale of an interest in your ASC provides an excellent opportunity to diversify those earnings by redeploying capital elsewhere. Given reimbursement trends in healthcare, a corporate partner allows you to spread your risk across many types of investments.
Many ASC owners overestimate the value of wholly owning their ASC and receiving an annual income versus selling a portion of their ASC to a corporate partner. This graph plots the amount of time to earn the equivalent of what NovaMed would pay you today for a portion of your center. The graph shows how long it will take an ASC to break even under varying growth assumptions.
Surgery Center Development
You might be surprised to see that under realistic assumptions, the break even point can exceed 10 years. Given all the uncertainty in the market, these payback periods make many owners think about selling a portion of their ASC.
The key variables that may affect the "Sit vs. Sell" analysis are:
- The difference between ordinary income and capital gains tax rates¹
- The differing future growth rates of ASC earnings
- The reinvestment rate² and risk premium³ applied to your payment
- Multiple of earnings paid
Learn more about NovaMed ASC management, development and acquisition services >>
