Surgery Center Partners: Questions to Ask

Reference Library >> Questions to ask a potential surgery center management partner

When choosing a corporate partner for your center, you'll want one that can meet your needs—both in terms of finances and the services provided. Here are some questions that can help you assess the suitability of a prospective partner.

How well does the corporate partner understand the needs and interests of physicians and their patients? (Things to look for: multiple centers, physicians serving as leaders in the company, and positive references from current physician partners)
Do the physician partners retain majority ownership of their center?
Are the physician partners active participants in decisions about their center, including location, equipment, staffing and medical issues?
Does the corporate partner offer a turnkey solution with all of the services required to plan, develop, and manage a center? What services does the company you are evaluating provide and what does it NOT offer?
Does the corporate partner manage all staffing issues, including recruitment, training, retention, evaluation, legal discharge, compensation, and benefits?
Does the corporate partner provide a feasibility assessment and business plan free of charge?
What is the projected ROI for a center like the one you are considering developing?
Is the required investment less than $15,000 per physician?
How does the corporate partner handle development fees? Are they pre-defined? What is the mark-up? Are they paid up front or can they be paid back over a specified number of years?
Can the corporate partner secure 90% or more of the required investment funding?
Does the corporate partner reduce its management fees to reflect lower revenues during the center's first year of operation?
Does the corporate partner retain ownership in a center, so that its financial interests are aligned with those of the physicians?
What is the corporate partner's track record of successfully negotiating fee schedules with payors?
How does the corporate partner select vendors and negotiate contracts for goods and services?
What are the corporate partner's procedures for obtaining Joint Commission on Accreditation of Healthcare Organizations (JCAHO) accreditation, Medicare certification, and state licensing?
Does the corporate partner provide billing services? If so, what fees are charged and what is the company's track record on collections?