Are you thinking about adding to or expanding your ambulatory surgery facility? Don’t make the mistake of jumping into a new development or construction project without having a clear and detailed strategic business plan. At LeftCoast Healthcare Advisors, we believe “doing your homework” is critical in creating high-performing, profitable ambulatory assets that meet the needs of patients, physicians, and investors.
What happens if we don’t have a detailed plan?
There is no shortage of free or simple “proformas” models you can use when creating an ASC, but are they truly complete? Having an incomplete or inaccurate feasibility study poses significant risks, including constructing a space ill-suited to current and future requirements. Without proper assessment, there is a real danger of investing in a facility that quickly becomes outdated with no ability to accommodate evolving technology and current clinical practices.
This misstep could result in oversized or vacant operating rooms, wasting valuable resources and exacerbating revenue loss. Without a thorough understanding of how patient demographics, service demands, and technology change over time, there is potential for underutilization of the facility leading to missed revenue opportunities and financial instability. You want a facility that can grow and adapt to future changes.
There is also value in going through the process of pulling a feasibility study together, and bringing your team with you through that process. Well-run processes engage multiple groups – providers, leaders, staff, owners, and anyone else with a stake in the facility’s future. The result is a clear plan that everyone understands and can support. Misalignment at the start of a project can be difficult to undo, so get it right from the start!
Bypassing an ambulatory feasibility study jeopardizes not only operational efficiency but also financial viability in both the short term and down the line.
What components are key to a quality plan?
An ambulatory feasibility study should thoroughly examine reimbursement, volume, clinical operations, administrative drivers, and typical financial inputs to ensure the viability and success of an expansion. It should also review opportunities to extend or optimize the life of your existing asset and maximize value during the interim.
