Hospital Partnerships and JVs

If my hospital’s interested in pursuing a hospital-physician ASC joint venture, what is the first step?
The first step is to explore your options and decide whether you want to approach the process alone or with a corporate partner. It’s important to do your research upfront since there can be benefits and drawbacks to both approaches. At Titan, we strongly believe in our approach and what we do, so we recommend working with a managing corporate partner who is economically aligned with all parties involved.

Once you’ve decided how to approach your project, you will need to work with your hospital’s surgeons to assess their interest, determine who will participate in the JV and negotiate ownership percentages. Once these decisions have been made you will need to perform a financial analysis that includes proformas, as well as syndicate additional surgeons in as needed. You can then move on to decisions concerning the location of your ASC and efficient facility design, including size, layout, services offered, décor and marketing. Titan has vast experience in all phases of this process. As a third party, we have the ability to move your project quickly to completion.

How is the project structured?
This depends on the desires of your hospital and surgeons. All parties will need to openly discuss ownership requirements and expectations up front in order to ensure that everyone is pleased with the final outcome. Titan is committed to a minority ownership interest so our partners are always able to enjoy majority ownership.

We’re not having any problems with our physician satisfaction. Should we still consider a joint venture?
Yes. Just because your surgeons are happy now doesn’t necessarily mean there won’t be issues in the future. Plus, you never know when a new surgery center may be prospected in your market and threaten to tempt your physicians away. Be proactive by working with your surgeons now, while you have the opportunity to build a true partnership  that will benefit both them and your hospital for years to come.