How to Engage Capital & Organizational Partners

Successful ASC partnerships are built upon trust, aligned goals, mutual value, and joint accountability!

Should your organization engage in a partner?

If you are considering a partner, do your homework! Partners are as variable as ASCs themselves. Regardless of business model or structure, the first step is to understand the goals and desires of each physician owner. Once you have a clear vision for each stakeholder, the alignment conversation begins. Starting internally, aligning on the short and long-term vision for the organization is the foundation for choosing the right partner. Adding additional organizational partners before solidifying physician alignment will only complicate conversations and slow the process down. ?

Are you ready to begin interviews with potential partners?

Once you have an aligned vision for the organization, it is time to begin evaluating potential ASC, Hospital, or Private Equity organizations. Finding the right fit begins with discovery: does their value proposition align with yours? The best alignment often comes from a partner that allows your ASC to grow and support the extension of your physicians’ professional practice. But the value proposition to your partner may be different, know and understand those differences. Money and value are not synonymous. Many physicians value operational control, flexibility, and individual autonomy over outright financial success. This is even more important when considering non-traditional ASC partnerships – health systems & institutional investors, private equity, IDNs, etc. Don’t be afraid to ensure you get what you truly need. The best partner is one who is aligned with your vision and brings the resources needed to drive you forward. ??

Are you set up to gain the most value from this partnership?

To ensure the most value from a partnership, it's crucial to build trust and mutual respect. If there is a lack of trust and respect in the beginning, it is unlikely to develop over time. Work to establish clear goals and expectations around transaction and implementation timelines, cost, and expense profiles while leveraging each party's strengths. Develop robust physician governance models that allow for open communication channels to address issues promptly and maintain alignment on strategies. Mutual benefit should be at the forefront, with continuous evaluation and improvement of performance against predefined metrics. Additionally, cultural compatibility and a long-term perspective are essential for fostering sustainable relationships and maximizing value over time.

Are You and Your Partner Accountable?

A great partnership involves trust AND accountability. Accountability can mean several things, but it starts with outlining what each partner brings to the table and then creating a hardwired process to compare, contrast, and discuss performance. Remember to build in reviews of management and physician performance into your operating agreements and a governance model to assess yearly. Clearly document the elements each party is committing to provide, and make sure they are measurable and specific. Having a transparent and open assessment process that is routinely reviewed at the board level allows both partners to compare notes and hold each other accountable.

Are You Prepared to Compromise?

There is a running joke that says a good negotiation ends in both parties feeling like they lost something. While this isn’t always true, it’s good to understand as an organization what you are and are not willing to compromise on. There will be lots of opportunities to disagree or negotiate elements of a partnership, so having a clear understanding of what is important to you is critical. And while negotiations may add a bit of time to the overall transaction, in the end, you have one chance to get it right. So, get it right from the start!

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Partnerships can be an incredibly valuable way for your ASC to grow and expand. Doing the upfront visioning and alignment homework takes time and resources, but allows you to get the most value from a partnership. If your ASC is thinking about adding a management or equity partner and wondering about the next steps, call LeftCoast Healthcare Advisors, they can help make your ambulatory vision a reality.