then are required by their fund documents to sell those portfolio com-
panies in 5 to 10 years. When a private equity fund sells — or "exits" —
the PPM platform, physicians generally have the right to participate in
that transaction and sell their rollover equity. Following the private
equity fund exit, the physicians no longer have any indirect ownership
interest in their ASC, as a new enterprise now owns the platform.
May the best model win
While both the JV and PPM ownership models have pros and cons, one
thing is certain: the ASC marketplace is more competitive than ever. A
few CEOs of ASC management companies recently told me in no
uncertain terms that despite the PPM industry activity, they would con-
tinue to pursue a traditional ASC joint venture model as part of their
core strategy.
OSM
Ms. Golino (dgolino@mwe.com), a partner at McDermott Will & Emery,
focuses her practice on mergers and acquisitions in the healthcare sector and
healthcare private equity.
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