Regent leading the way with new ASC joint venture models In May, Regent Surgical Health officially opened its 22nd joint venture, the Plaza Ambulatory Surgery Center in Portland, Ore. A partnership among Regent, our physician partners and the 483-bed Providence Portland Medical Center, the new outpatient healthcare facility provides quality care in areas such as podiatry, urology, neurology and general surgery. The facility also serves as the latest example of Regent’s unparalleled expertise on developing these collaborative enterprises. Since 2001, Regent Surgical Health has led the way in developing and managing successful surgery center partnerships and, today, a vast majority of our partnerships are physician/hospital joint ventures. Why? Our experience has led us to develop proprietary ownership models that give both doctors and hospital administrators what they need to ensure long-term clinical and financial success. In our October 23 session at the Becker’s ASC 21st Annual Meeting – The Business and Operations of ASCs, Chief Development Officer Jeffrey Simmons and I walked through the many facets of Regent’s unique approach, as well as the various trends affecting ASCs today. Highlights of our presentation included:
- Strong ASC JV Growth: In 2000, 78 percent of ASCs were independent. Today, about 60 percent of ASCs are independently owned. In 2013, 22 percent of ASCs were physician/hospital joint ventures.
- ASC reimbursement rates vary: If an ASC is fully contracted, the average reimbursement for independent ASCs is between $1,200-$1,700 per case. For hospital-affiliated ASCs, the average reimbursement is between $2,200-$3,000 per case.
- Proven JV governance structure: Using Regent’s model, the hospital votes Regent’s ownership to demonstrate “control” on key legal and financial issues. This approach allows ASCs to obtain “hybrid” payer contracted rates, which are lower than outpatient hospital department rates, but higher than independent ASC rates. Physicians also maintain clinical control of operations even as minority owners, making it attractive to participate in these partnerships.
Regent will soon unveil specifics on a number of ASC projects that are currently under development. As the nation’s top hospital/physician joint venture, turnaround and de novo specialists, we are continually developing new models and financial solutions to meet the demands of this changing landscape. We look forward to working with our partners and colleagues on these exciting opportunities. For more information on the October 23-25 Becker’s conference, please visit here.