Hospital Joint Venture
Physicians + ASC Management Partner + Hospital = Partnership
There are various reasons why ASCs, hospitals, and physicians would consider aligning to create a Hospital Joint Venture (JV), also known as a three-way partnership. The healthcare landscape is ever-changing, while the need to meet the needs of patients, payers, and stakeholders is every present. As more high-acuity and other procedures historically performed on an inpatient basis continue to migrate to an outpatient setting, there are opportunities for physicians, ASCs, and hospital/health systems to join forces in a mutally-beneficial way.
Three-way joint ventures provide each shareholder unique benefits:
Physicians have the opportunity to diversify their revenue opportunities, meet the needs of their patients, and benefit from efficiencies that ASCs can offer.
ASCs are able to maintain current volume with the opportunity to increase revenue from a more integrated referral base, more managed care negotiation power, and the ability to participate in additional networks (narrow, ACOs, etc.). Additionally, the influx of eligible physicians can create an opportunity to introduce or enhance service lines.
For Hospitals/Health Systems:
Hospitals and Health Systems have the ability to strengthen and grow their service offerings, patient base, physician relations, and relevancy with an ASC offering. Another key benefit of providing an alternative high-quality, lower-cost outpatient surgical setting, is that it meets the growing demand of patients who are looking to reduce their healthcare spend and payers who are looking for more cost-effective provider options.