AMXGlobal

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Physician Surgeon

We have established the basic concept for the Ambulatory Surgery Center and now want to focus on an abbreviated look at getting started with identifying several critical issues related to establishing the end result.  Business and planning issues are a critical place to start.



Financial Feasibility

Coordinated efforts involving the Physician Surgeon, the ASC Management Company (who will manage the day to day operations of the surgery Center) on behalf of the Owners and the Developer will be required to establish the financial feasibliity of the investment.

The Physician Surgeons jointly with the ASC management company will provide the data such as procedures and the number of each procedure thereof that each Physician Surgeon will commit to, along with historical cost of operating the Surgery Center provided by the selected ASC Management company based on their historical operations data will be collated to produce a financial summary to the Owners of its financial feasibility.

This will be coupled by the financial model provided by the Developer and verified by the ASC Management Company as to the financial benefits of ownership of the real estate and the possibility in participating in ownership of the satellite buildings and the tax benefits to the owner whether individually or by partnership depending on how the Physician Surgeons and the ASC Management Company want to participate.

 

Capital Requirements

The capital requirements required for the land, building, tenant improvements, furnishing, equipment, working captial and cost of capital being the most significant will have to be determined by the Parties and approved by the Owners.

Normally, ownership is based on units with pre-established values based on the appraised value of the facility.  The amount of capital required depends upon the size of the project and/or whether the Ambulatory Surgery Center will be a tenant or own and purchase real estate from the developer.  There are, however, significant benefits to fully congruent ownership.

Key items to negotiate with the ASC Management company include the percent of ownership, the management fee, the services provided, the personnel employed or provided, the length of the ASC Management Company contract, the board rights and the reserver or veto rights of the management company.  AMXGlobal will recommend the ASC Management company but the Physician Surgeons are not obligated to contract the recommended ASC Manageent company recommended by AMXGlobal.  A solid ASC Management company partner can substantially improve the financing and financial prospects of the Ambulatory Surgery Center.

 

Other Abbreviated Consideration

There are many other subjects of consideration to be made by the Owners such as number of Physicians Surgeons.  With too many Physician Surgeon owners there is often a dilution of individual physician responsibility and ownership interests.  With too little ownership, physician investors often lose their commitment to the Ambulatory Surgery Center and seek other alternatives.

All these considerations and issues are but a few that will be considered during the process of ultimately owning and operating an Ambulatory Surgery Center.  The start is the desire to develop and own such a center and begins with the marketing efforts in the evenings sponsored by the Developer and the ASC Management Company.  Prior to this, AMXGlobal and the ASC Management Company look for lead Physician Surgeons to participate in closing the group of Physician Surgeons who will ultimately own the Ambulatory Surgery Center.