Outpatient Surgery Magazine - Subscribers

Focused Factories - November 2015 - Outpatient Surgery Magazine

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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4 1 N O V E M B E R 2 0 1 5 | O U T P A T I E N TS U R G E R Y. N E T and improve care quality. In recent years we've seen the creation of 8 separate interventional pain management platforms intended to combine individual pain man- agement practices and spin off de novo offices. For facility owners and operators, a focus on the following areas can drive investor and acquirer valuations. • Strong physician relationships. Generally speaking, a pain management group seeing 100 total patients from 10 referral sources will receive a higher valuation than one getting 50 patients each from 2 sources. The reason being, if 1 of those 2 referring physicians retires, moves or sim- ply becomes dissatisfied with his patients' care, the group's business could be irreparably damaged. Investors want diverse patient streams, and view a diversity of referral sources as a proxy for the market per- ception of the group, the strength of its marketing efforts and a testa- ment to its reputation. • Procedure mix. Investors seek pain management groups that treat the whole patient, and are able to craft the treatment solution to the specific patient. Groups that deliver a healthy mix of proce- dures, both routine (injections) and complex (nerve stimulation), and such ancillary services as physical rehab and prescriptions, are seen as more competitive in the market. However, a conservative use of narcotics as well as exceptional clinical protocols and com- pliance procedures are must-haves for any investor. • Investment in the business. A track record of investments in systems — both human and IT — show a group's commitment to efficiently deliver high-quality care. The fact that they've been willing to take a short-term cash flow hit in order to invest in compliance systems and employees, clinical and practice management software, and financial reporting packages, demonstrates a long-term vision that excites

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