Keys to a Successful Ambulatory Surgery Center Joint Venture (41H)

Entering into a joint venture with an ambulatory surgery center and management company can be a fraught proposition for all the prospective partners. Every hospital or system CEO, physician owner and surgery center management company leader can name examples of failed JVs. The benefits are not always clear, the risks can be high, and there is often a fundamental lack of trust among the participants that can either scuttle the project at inception or lay the groundwork for its eventual failure. Despite these concerns, 60% of health system leaders are contemplating ASC joint ventures, according to a January 2024 VMG Health survey.

Our panelists will present key considerations for the successful implementation and operation of a JV ASC from inception to maturity. The members include a health system CEO, management company director and ASC administrator who have worked together in various phases of a successful JV and will synthesize the abstract structural elements with practical applications and solutions from each perspective. High-level topics include establishing the fundamental rationale for entering into a JV, creating a framework that balances the partners' needs, integrating the JV into the health system's strategic plan while maximizing stakeholder value, fostering a spirit of competitive collaboration, and maintaining trust through open communication and transparency. Operational considerations include maintaining lines of authority and reporting that balance with independence and self-governance, supporting effective management, and leveraging efficiencies in payer contracting, purchasing, revenue cycle, infrastructure and human resources. Closing out the presentation will be a summary of actual benefits that accrue to the members of a well-designed and managed partnership.