Make the Most of Joint Ventures Get the best from your hospital partnership BY TERRY BOHLKE


With hospitals increasingly looking to participate in the ASC industry and physi- cians increasingly looking for a health system partner,


a mutually beneficial hospital-physi- cian joint venture relationship is more important for the ASC industry now than ever in the past.


During my presentation “Getting the Most from Your Hospital Part- ner” at ASCA 2020 in Orlando, May 13–16, I will discuss this complicated alliance and propose solutions to ame- liorate


dysfunctional joint ventures.


We will weigh the benefits, challenges, expectations and regulatory concerns and give specific suggestions on how to get the most of the benefits, reduce or eliminate challenges and balance expectations for both the hospital and your physician stakeholders.


Pros and Cons There are many potential benefits to a hospital-ASC joint venture and, like any relationship, there also can be challenges. Failure of either part- ner to take full advantage of the many shared opportunities can sour the part- nership and magnify any defects. Tak- ing inventory of the potential bene- fits, as well as any big challenges, is an important first step to ensure you are getting the most from your partner- ship. During my presentation, we will discuss, as a group, the most common benefits and vexing challenges.


Understanding the Relationship From Your Partner’s Point of View I find it helpful in any business relation- ship to routinely reflect on why you part- nered in the first place. There are many reasons a hospital would want to part-


Taking inventory of the potential benefits, as well as any big challenges, is an important first step to ensure you are getting the most from your partnership.”


—Terry Bohlke, Community Health Systems


ner with an ASC. Many hospitals see the growth in outpatient surgery and the movement of these cases to ASCs. They may understand the benefits to patients and the lower cost to the healthcare sys- tem, particularly in a value-based model. Many hospitals partner with ASCs to solidify their relationships with the sur- geons. Some are forced into a “defen- sive strategy” when they realize the doc- tors are building an ASC with or without them. Either way, it is important to understand your partner’s modus ope- randi for joint ventures and their result- ing expectations for your surgery center. Your health system partner also has


regulatory sensitivities that often differ from those of an ASC. ASC administra-


tors and physicians can often find the myriad of hospital requirements non- sensical, frustrating and even dizzying at times. Understanding the hospital’s point of view and helping your hospi- tal partner understand the differences in ASC regulations can ease the tension.


Making It Work


One of the most often cited reasons for an ASC to partner with a health sys- tem is to access advantageous managed care contracts. Payer contracts avail- able through a health system have the potential to be substantially better than what might be obtained by an ASC that does not have that same clout. A health system’s great contracts, however, do


As this magazine goes to print, COVID-19 is forcing meeting cancellations across the country. For the latest on ASCA 2020, please visit ASCA's conference website at ascassociation.org/annualconference.


10 ASC FOCUS MAY 2020 | ascfocus.org


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