Case Study
Joint ventures are the fastest growing partnership models in outpatient surgery delivery today because they allow physicians to gain control of their patient outcomes and personal income, while the hospital increases market share, solidifies physician relationships and enhances clinical outcomes. The end benefits are obvious, but the path to realization is often not as clear.
The Challenge of Inertia
One of the most common pitfalls in joint venture development is momentum, and the lack thereof. Plans and negotiations start out with enthusiasm, but the process drags out and inertia sets in. Physicians become disenchanted and feel the hospital is only paying lip service to the project. Their skeptism is sometimes fueled by industry myths (i.e., the hospital partner must own at least 50% in the partnership and maintain voting control of the board of managers, etc.) These issues are often the result of "Do It Yourself" efforts to develop the joint venture partnership.
Frye Regional Medical Center in Viewmont was experiencing some of these classic barriers. The hospital had been exploring physician partnership opportunities for years, but the efforts had stalled. Frye needed a catalyst to provide impetus and focus. As a leader in physician ownership models, Nueterra Healthcare brought exactly the kind of the development and management experience Frye needed to bring the joint venture to fruition.
Common Problems, Uncommon Solutions
As with many facilities, the existing ASC facility was experiencing low case volume and a significant variance in case types. The facility needed a solution that would solve issues of physician retention, recruitment andpartnership. Nueterra recommended a resyndication of the existing ASC with physician ownership as a key component. Nueterra brought together the revenue, physicians and process to quickly expedite the project. Nueterra's experience helped Viewmont avoid common pitfalls such as failure to give physician partners control or equal participation over strategic planning and operational decisions and overbuilding the physical plant. Without the speed bumps of inexperience, Nueterra allowed Frye to experience unprecedented speed to market.
The Momentum Continuum
The partnership development was just the start. Working with the Viewmont team, Nueterra's ASC management experts helped bring positive impact almost immediately. The center was able to increase both the volume and complexity of cases. Nueterra renegotiated managed care contracts, and realigned staff to maximize efficiency. Nueterra communicated frequently and openly to build esprit de corps and confidence in the value of the company's vast industry insight. This, in turn, inspired physicians and staff to be more innovative and involved.
Ongoing Success
The cooperative partnership of hospital joint ventures are growing for very good reasons: they work for everyone involved. Physicians can focus on clinical outcomes and patient care rather than negotiating contracts, navigating state regulatory issues, researching equipment financing options or building a healthy referral base. Hospitals can experience increased market share, reduced outmigration of patients and procedures, preempt potential ambulatory care competition, prevent defection of specialists, avoid increased competition for outpatient services, and increase physician retention rates.
Viewmont illustrates many of these benefits in the real world. With improved efficiency and staff engagement, patient satisfaction at the facility has consistently improved. The number of full-time cases per employee has increased 33% on average. Viewmont added Pain Management as a specialty, which has grown steadily from inception. Overall growth has helped other specialty groups decrease outmigration. Increased staff confidence and improved technology also made it possible to recruit additional ENT's.
The Viewmont resyndication project is an example of the benefits of proactive collaboration between physicians and hospitals.