Strategies | Business strategy and the bottom line |
Finding the Right Fit The advantages and disadvantages of single- and multi-specialty ASC models
Y
ear over year, graduating GI fellows must choose between practicing independently or hospital employment. More questions arise for those fellows who choose to practice with an independent group and seek ownership in their center. With the continued popularity of ambulatory surgery centers (ASCs), this question has never been more relevant: Should I pursue a partnership in a single- or multi-specialty ASC? Here are some of the considerations to weigh when answering this question.
Financial Factors If you are buying into an existing center, the initial investment required is important, as well as the overall return on investment. The capital needed to invest in a relatively new
8 PE GI Journal March 2021
center operating only a few years may be more attractive for a younger physician who is just starting their career. The financial return and distributions should increase over time as the center continues to grow and mature. On the flip side, the purchase price to buy into an established center that has been operational for several years can be expensive. Still, the financial return should be proportionally attractive. Suppose you join a group that is building a new center. In that case, the initial investment is also one of the first components to consider and relatively low compared to buying into an established center. In a multi-specialty ASC, there will likely be more physician partners to divide costs between, which can appear to be a good thing. However, it may be a disadvantage for the partners of a specialty, such as gastroenterology, that requires far less expensive equipment. Plus, the overall multi-specialty facility will need to be larger to accommodate
iStock.com/Andrey Shevchuk
By Annie Sariego
