Partnership Basics

You have questions… we can provide answers! No matter where you are in your decision making process, you probably have questions.

We encourage you to contact us to start a discussion. We have worked with physicians across the country and have the experience to help you understand every step of the partnership process. We can also tell you more about the AMSURG Advantage, our unique set of offerings that makes us stand out from the crowd.

To speak with us, please call 877-741-0085 or email.

 

Why are physicians interested in joining or building an ambulatory surgery center (ASC)?

Developing and owning an ASC allows you to share in the facility fee revenue for the outpatient surgery cases you are performing. An outpatient surgery center also allows you to provide cost-effective and convenient high quality care for your patients. Ownership in an ASC is an investment in the future success of your practice.

 

How is a partnership with AMSURG structured?

When you partner with AMSURG, physician owners will retain 49 percent of the center’s ownership and AMSURG will become a 51 percent owner. While this makes AMSURG the majority stockholder, the governance of the center is delegated to a consensus operating board with equal representation between the physician owners and AMSURG.

 

Why does AMSURG have to be the majority stockholder in a partnership?

As a publicly traded company, we have majority ownership in order to consolidate surgery center revenues. It is important to note that while we own 51 percent of the center, the center is governed by an operating board with equal representation between the physician owners and AMSURG.

 

Where can I learn more about AMSURG’s financial performance or stock price?

Visit Investors to learn more about our company’s financial performance.

 

Why should I consider selling a portion of my center to AMSURG?

  • You wish to realize the cash value of your center. If you are a center owner, you have invested your time, energy and expertise to build your center. You have built an asset with real value, but there are limited ways for you to realize your center’s value. AMSURG’s purchase of a portion of your center allows you to be paid now for several years’ worth of earnings in today’s dollars.
  • You want to consider your center in your financial planning strategy. As a center owner, you understand that one of the elements of planning for your financial future should be determining the optimal time to sell an interest in your surgery center. This decision may be part of an overall diversification strategy, a tax and estate planning vehicle, or a hedge against further reimbursement cuts.
  • You want to benefit from the lower tax rate on capital gains. Sale proceeds are taxed at the capital gains rate versus your ongoing distributions, which are taxed as ordinary income.
  • You would like to maximize your profit. The present value of getting your money up front as capital gains is significantly greater than waiting to receive ordinary income over time.
  • You would like to hedge against future risks and protect your current investment. Health care is a volatile industry and change is the only constant. Future reimbursement rates and contracting is uncertain. You can decrease your risk exposure by selling a portion of your surgery center and taking cash payment on future earnings at today’s valuation now.

 

Do I need a third party to contact AMSURG?

We are always interested in speaking with the physician owners of any surgery center or physicians considering a new center. You do no need to rely on a third party, such as a broker, to initiate or mediate discussions with us. A third party will potentialy cost you money.

 

We look forward to working with you and your financial and legal advisors. Since 1992, we have successfully negotiated the development or purchase of more than 200 surgery centers.

 

What is my surgery center worth?

Your surgery center has likely already proven its value to you by enhancing your productivity and increasing your income. When the time is right to consider selling a portion to AMSURG, we determine your center’s value by multiplying the profit of the center by the current surgery center industry multiple. If you contact us, we can give you a quick and fair assessment of your center’s value in today’s market.

 

How and when is payment made for the center?

The purchase price is paid 100 percent in cash at closing.

 

If I am interested in building a new center, why consider working with AMSURG?

  • Expertise in new center development. When you work with AMSURG, we deploy a team of health care construction professionals with extensive experience in both construction and clinical management – key to building and running and efficient center. We handle pre-planning tasks, site selection, lease negotiations, space design, construction management, state approvals, Medicare certification and many other steps along the way.
  • Physician alignment. If physicians from multiple practices will be participating in the new center, AMSURG serves as the bridge between the various physician groups. We help provide leadership and guidance to unite the physicians in a common goal of growth and high-quality service to the new surgery center patients.
  • Share development expenses. When AMSURG enters into a partnership, we are your true partner. AMSURG contributes our share of the costs to develop and equip the new center, thereby reducing the amount you must contribute. We also apply our expertise and economies of scale to manage costs.
  • Local financing is usually more complex and difficult. Without AMSURG as a partner, physicians must typically seek and obtain financing at the local level, a cumbersome and time-consuming process. Seeking financing alone can take longer, include more paperwork and cost more in fees compared to working with AMSURG.
  • Personal investment. Without AMSURG as a partner, local financing can require each physician, as well as the physician legal entity, to personally guarantee 100 percent or more of the loan amount.
  • Access to capital. As a partner with AMSURG, your new center can have access to a significant line of credit available through AMSURG once the promissory note is signed. There are no closing costs and only minimal filing fees.
  • More favorable terms. Typically, the overall terms are more favorable to the partnership and are more beneficial to the overall center development process. For example, if the physician entity owns 49 percent of the surgery center, an individual physician only has to guarantee his or her ownership percentage in the entity.

 

To learn more about developing a center with AMSURG, we encourage you to contact us or learn more at Build a New Center.

 

How can AMSURG help if I want to build a new center?

Planning, building, certifying and operating an ASC is a complex and time-consuming process. With AMSURG as your partner in developing a new ASC, you can spend time doing what you do best – providing quality patient care.

 

In our partnerships, AMSURG provides the expertise required to design and build the center, to hire and train the staff, to successfully complete the state licensure and Medicare certification process and to contract with third party payers.

 

To learn more about building a center with AMSURG, we encourage you to contact us or learn more at Build a New Center.