The Benefits of ASCs Private Equity Partnerships

The Benefits of ASCs Private Equity Partnerships

In a recent article published in Becker’s ASC Review, ASCs private equity was identified as one of the three disruptors in the outpatient surgery space, alongside supply costs and staffing shortages.

The concern raised is that private equity investors may prioritize profit over patient care, potentially not giving patients the priority they deserve. Physician owners, on the other hand, recognize that placing patient safety and quality care at the forefront leads to success. I personally agree with this statement, having worked as a clinical practitioner for 30 years. It’s important to note that private equity is a broad term, encompassing various models. Therefore, physician owners must ensure alignment of interests when considering a private equity partnership.

How ASCs Private Equity Empowers Physicians in Today’s Healthcare Landscape

Private equity offers a range of unique solutions to address the current healthcare climate, which may not be accessible to independent practitioners. These advantages can be grouped into three categories.

Firstly, a private equity partnership enables physician partners to monetize the true value of their practice at a tax-advantaged capital gains rate, typically based on multiples of the current adjusted EBITDA. This allows physicians to achieve multiple positive outcomes for themselves and their families. Younger physicians can use the proceeds to pay off education loans, reduce mortgages, or fund their children’s education. Older physicians can diversify their wealth or work towards a more secure retirement. Additionally, in the unfortunate event of disability or death, a physician’s equity value in a private equity partnership is typically higher, ensuring financial security for them and their families.

The Advantages of ASCs Private Equity Partnerships in Healthcare Management and Control

Private equity operates as a meritocracy, with compensation tied to production as a percentage of collections, reducing concerns in this regard. Being part of a well-capitalized group offers several advantages, including better prices through group purchasing and improved reimbursement rates through collective negotiation with payers. The burden of maintaining top-tier EMR, billing, marketing, IT, and ASC facilities is shared, with the private equity partner shouldering most of it.

Another advantage is that physicians no longer need to wear multiple hats and can focus on patient care, which is their primary reason for entering the medical field. Professional management by corporate executives enhances results, particularly in terms of the patient-physician relationship. Physicians can have peace of mind knowing that the practice’s stewardship is in capable hands. Regarding control, it’s essential to align with a private equity partner committed, in writing, to joint governance, with physician partner positions on the board of governors. Not all equity is equal, so it’s vital to ensure the private equity partner offers identical equity to all equity holders, avoiding any phantom equity.

How Private Equity Partnerships Bring Balance to Physicians’ Lives

Lastly, a partnership with private equity can significantly improve a physician’s lifestyle. With reduced administrative responsibilities, physicians gain more free time. Safeguards are in place against future risks and uncertainties, such as changes in reimbursement, competition from hospital systems, value-based care payments, acquisition of referral sources by larger stakeholders, and direct contracts with self-insured employers—areas where small independent physician groups lack the scale and capital to participate.

In summary, capital infusion and professional management can positively impact the patient-physician relationship and reduce stress in a physician’s life when executed in a physician-friendly manner.

The Benefits of Private Equity Partnerships in ASCs

Comprehensive Care and Personalized Surgical Solutions

At South Florida Same Day Surgery Center, our unwavering commitment is to provide comprehensive care coupled with a personalized approach to surgical procedures. Our highly skilled surgeons work closely with each patient, ensuring a meticulous evaluation, precise diagnosis, and the creation of an individualized treatment plan. We prioritize patient education, ensuring that you have a thorough understanding of your condition, treatment options, and expected outcomes.

Why So Flo Same Day Surgery Center Stands Out for Outpatient Surgeries in Pompano Beach

So Flo Same Day Surgery Center has implemented a range of measures to ensure the utmost safety for healthcare patients in South Florida. This includes adhering to stringent infection control protocols and creating a comfortable and inviting environment for patients in need of surgery in Pompano Beach. Moreover, our center is continually seeking ways to enhance our services and improve the overall patient experience. With a team of dedicated and highly skilled professionals, you can expect to receive personalized care tailored to your specific needs. Our center takes pride in offering a wide spectrum of surgical procedures, catering to both routine and complex cases, to accommodate diverse patient requirements. As South Florida’s premier same-day ambulatory surgery center, we demonstrate an unwavering commitment to delivering the highest quality healthcare services.

South Florida Same Day Surgery Center serves Pompano Beach and South Florida. Thus, offering state-of-the-art ambulatory outpatient surgical services for surgery in Pompano Beach. Therefore, if you are a surgeon considering a move to an ASC, evaluate the specific needs of your practice. South Florida Same Day Surgery Center is a state-of-the-art facility with specialized staff and lower costs. Visit our new office located in Pompano Beach, Florida, and join our outpatient center. We are actively searching for new surgeons. So, start scheduling your surgeries with South Florida Same Day Today. Call (954) 532-1160 to speak with one of their skilled administrators.

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