Outpatient Surgery Magazine - Subscribers

Keep Your Nose Clean - Outpatient Surgery Magazine - August 2018

Outpatient Surgery Magazine, providing current information on Surgical Services, Surgical Facility Administration, Outpatient Surgery News and Trends, OR Excellence and more.

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• Kelso & Co. acquired Physicians Endoscopy • KKR & Co. acquired Covenant Surgical Partners • Tenet Healthcare Corp. acquired a controlling interest in United Surgical Partners International (USPI) • UnitedHealth Group/Optum acquired Surgical Care Affiliates Despite these mega deals involving the largest ASC management companies, many of those that remain continue to structure their ASC partnerships in traditional JV arrangements, rooted in the value of having physicians as direct minority owners. Physician ownership cre- ates economic and reputational alignment, leading to high-quality care, better utilization and smarter expense management. The few ASC management companies that have tentatively explored PPM arrangements still tend to pursue the traditional JV model, consistent with their historical strategy and national platform. No matter who holds the reins, traditional ASC management compa- nies seem to have the same horses in the race. This is not the case with PPMs, which have a fundamentally different approach to ASCs. PPM model After the failures of the 1990s, today's PPM companies (often referred to as "platforms") are focused on delivering value to their managed practices and growing the PPM platform's earnings. They often do this by developing and building out ancillary services, including lab, imag- ing and ASCs. Unlike ASC management companies that view the sur- gical center as the core business, the typical PPM platform views the ASC as only an "ancillary service" to a medical practice. Because of this fundamentally different investment strategy, the PPM platform typically elects to: • enter into a long-term management arrangement with the practice; A U G U S T 2 0 1 8 • O U T PA T I E N T S U R G E R Y. N E T • 1 9

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