Becker's ASC Review

34 Executive briefing: Optimizing ASC Value Pre-Transaction planning can have disastrous implications on business value, and the center is essentially doomed from inception. Competent man- agement will increase the likelihood of success. In valuing ASCs, we can routinely assess the depth and compe- tency of management merely by the center's ability to produce the necessary financial and operational data required in connection with the valuation. Centers who are able to produce the necessary "slices and dices" of data tend to be more sophisticated, and it generally indicates that management and the physicians are rou- tinely monitoring a center's performance. On the other hand, when centers are unable to produce what we deem to be basic management information, such as case volume by specialty, by physician, by payer and reimbursement by spe- cialty by payer, etc., it speaks to a lack of management depth and often information system capabilities. Another example relates to payer contracts. When is the last time these were thoroughly reviewed to make certain that a) the center is getting paid according to the contract; and b) that the bread and butter cases that constitute the bulk of the revenue of the center are getting reimbursed competitively? While competent management, either via employment or through a contractual relationship, may not be cheap, generally it's a wor- thy investment. 5. Customer service — focus on delivering a high-quality, cost-effective product/service And the money will follow. Not the other way around. Put your- self in the patient's gown, even for a minute. Quality healthcare is as much grounded in patient perception as it is in statistical benchmarks. While there are numerous benefits to having a pro- cedure done in an ASC, one of the most compelling is the patient experience. And while I love my many hospital clients, having an outpatient procedure done in a hospital OR setting, where there are not dedicated outpatient ORs, can be a very stressful and inconvenient experience. Try to find parking. Try to quickly and efficiently get checked in. Try not to get too angry if your case is continually delayed because a more urgent case once again bumped you. And finally, enjoy what could be a much higher patient copay and/or coinsurance. And like the domestic airline experience, try not to get too annoyed with oftentimes less than accommodating staff. Enough said. Focusing on providing a quality patient experience and actively monitoring and measuring the same will provide eco- nomic returns down the road. n HealthCare Appraisers, a nationally recognized valuation and consulting firm, provides services exclusively to the healthcare industry, including: busi- ness valuation (e.g., ASCs, hospitals, physician practices, dialysis centers, home health, diagnostic/treatment facilities, and intangible assets); fixed asset appraisals for furnishings, machinery and equipment; fair market value opinions for compensation and service agreements (e.g., employment, ED call coverage, medical directorships, collection guarantees, equipment lease/use arrangements, and service/co-management arrangements); consult- ing and advisory services (including valuation for financial reporting); and litigation support. www.HealthCareAppraisers.com | info@hcfmv.com | (561) 330-3488 DELRAY BEACH | DENVER | DALLAS | CHICAGO | PHILADELPHIA Not all things are created equally. We are not your average Healthcare Valuation Firm. With over 12 years in the business and thousands of fair market value opinions rendered, HealthCare Appraisers has assembled a diverse, highly experienced team to help you navigate through a myriad of valuation needs and dilemmas. HealthCare Appraisers - Redeening Healthcare Valuation Since 2000 "In valuing ASCs, we can routinely assess the depth and competency of management merely by the center's ability to produce the necessary financial and operational data required in connection with the valuation." – Todd Mello, Partner and Co-Founder of HealthCare Appraisers "With respect to fixed costs, I have seen too many centers over the years purchase excessive equipment in an attempt to attract each and every available surgeon, regardless of whether it makes financial sense to do so." – Todd Mello, Partner and Co-Founder of HealthCare Appraisers

• Cover