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EndoCenter
Partners Collaborates with San Francisco Gastroenterologists to
Create Profitable Endoscopy Center
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Facility:
Sutter Street Endoscopy Center, LP
San Francisco, CA
Physician-partners:
Frank J. Farrell, MD
Gregory Fung, MD
Kevin M. Man, MD
James H. Reed, MD |
The Situation
Frank Farrell, MD met Samuel Marcus, MD, PhD, co-founder of EndoCenter Partners, at a dinner meeting of Bay Area gastroenterologists in 1999. Over dinner, Dr. Marcus explained how EndoCenter Partners had opened the first free-standing endoscopy centers in the San Francisco Bay Area, starting in the South Bay. Realizing the benefit of owning his own center but working as a sole-practitioner, Dr. Farrell quickly began recruiting other physicians to become partners in a center. Knowing that profitable centers require sufficient case volume to offset fixed operating costs, he first contacted Kevin Man, MD with whom he had trained. Dr. Man and his partners, Gregory Fung, MD and James Reed, MD, were receptive and further discussions with Dr. Farrell and EndoCenter Partners ensued. As Dr. Farrell noted, "The four of us had the advantage of having known each other for several years. We knew that our combined case volume was the right size for a successful center and our personalities are compatible."
The Solution
Once a final partnership agreement was signed, EndoCenter Partners set to work locating potential sites in San Francisco and bringing in architects and engineers to evaluate them for suitability and to prepare construction cost estimates. As Dr. Farrell noted, "It takes time to build something like an endoscopy center in San Francisco. Appropriate locations are difficult to find and we wanted the right place. Also, working with the City involves a lot of red tape. Who has time to practice medicine and undertake a project like this on their own?"
Fortunately, EndoCenter Partners specializes in making the development process entirely painless for their physician partners. Once the location on Sutter Street was secured, facility build-out required another six months. But during that time, supplies, furnishings, and medical and information technology equipment all were purchased and installed, and service contracts were secured.
The center's staff was hired and trained on procedures. Preparations also were made for state licensing, Medicare certification, and accreditation through Joint Commission on Accreditation of Healthcare Organizations (JCAHO). Fee schedules were finalized with payors once the center opened and the required licensing, accreditation, and certification were complete. Noted Dr. Farrell, "Start to finish, opening a center with EndoCenter Partners was a very good experience. Their approach defines 'turnkey.' "
The Results
"Having our own center has been a very good thing," stated Dr. Farrell. We benefit from the revenues that would otherwise go to the hospital. EndoCenter Partners' gastroenterology experience and business knowledge, including knowing how to work with our payors, has proven to be a definite advantage." Performing procedures in their own center has provided other benefits for these physician partners. Their scheduling preferences are accommodated, affording them greater control over their time. And the center's dedicated, trained staff can efficiently deliver high quality care. As a satisfied partner, Dr. Farrell regularly encourages other physicians to investigate opening their own center with EndoCenter Partners. In fact, his recommendation helped lead another group of gastroenterologists to partner with EndoCenter Partners to open San Francisco Endoscopy Center, LLC. As he notes, "Ours has been a very positive relationship."
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