Issue link: https://beckershealthcare.uberflip.com/i/572638
11 for physician alignment. Luke Lambert, CEO of Ambulatory Surgical Centers of America, offers five thoughts on the forces driving hospitals to convert HOPDs to ASCs. 1. Hospitals are rethinking an old strat- egy. ere a significant number of HOPDs that once were ASCs. "e situations where we've seen hospitals interested in turning HOPDs into ASCs have represented a reversion to the facility's original status," says Mr. Lambert. "[e facilities] enjoyed high reimbursements and profits for a period of time but found aer five or more years they struggled to maintain case volume. Rather than allow the HOPD to become a money loser, they decide to sell part of it to area physicians to run as an ASC again." 2. Not all struggling HOPDs will be converted. Some hospitals may seize the op- portunity flip an HOPD, but this will not always be the case. Many of these facilities are not free- standing and would be more of a struggle than benefit to convert. "I think there will only be a few of these conversions each year as there are not many HOPDs that are freestanding and fre- quently hospitals are happy to close them if the cases will move to their other hospital ORs," says Mr. Lambert. 3. Timing is everything. is type of conver- sion would likely be subject to review and approval in certificate of need states. Hospital leaders have to consider how navigating the regulatory process will impact the project's likelihood of success. "If a hospital waits too long then physicians may de- velop their own projects. If done too soon the hos- pital may unnecessarily forego profits," he says. "It varies by state but the relevant health authorities will generally approve these conversions without much hassle as they don't add new ORs, and the conversions will reduce the cost of healthcare in the community." 4. Physician involvement will make or break the project. There remains a signifi- cant pool of independent physicians, but that pool is not limitless. Depending on the market, independent groups may be considering their own ASC projects or considering partnering with a competing hospital. If the conversion is to be successful, a hospital will need to find a group of physicians willing to purchase a stake in the center. 5. ASC management companies can be valuable partners. Hospitals can flip HOPDs singlehandedly, but it is oen helpful to involve an outside party that has experience in the ASC industry. ASC management companies can be key in identifying and engaging a physician group for the project. "Typically a management company will organize the physician group that purchases the facility, manage the facility aer it becomes a joint venture with physicians and participate as an investor in the center," says Mr. Lambert. n Flipping HOPDs to ASCs: A New Industry Trend? 5 Key Thoughts (continued from cover) Luke Lambert • Want competitive bids? • Want the best price and terms? • Want to partner with a hospital? • Which of the 30 ASC companies is best for you? • Want to sell your ASC real estate? Want to sell your ASC or endoscopy center? ASC Sales Purchases Mergers Acquisitions Valuations Joint Ventures Partnering Consulting Jon Vick, President of ASCs Inc., has facilitated over 250 ASC partnership transactions. He specializes in ASC sales, strategic partnering, and ASC/MOB real estate sales. To find out how we can facilitate the sale of your ASC, contact Jon Vick at JonVick@ASCs-Inc.com or 760-751-0250 Get more information about how ASCs Inc. can find you the best deal, visit www.ASCs-Inc.com today!