Why should I consider selling a portion of my surgery 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 avenues for you to realize your center’s value. AMSURG’s purchase of a portion of your center guarantees you’ll 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 one of the elements of planning for your financial future is 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. Healthcare 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.
If I am interested in building a new center, why should I consider working with AMSURG?
Expertise in new center development. When you work with AMSURG, we deploy a team of healthcare construction professionals with extensive experience in both construction and clinical management – key to building and running an 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.
Shared 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.
Easier, faster financing. 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 for a 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.