No one knows exactly how
many centers have gone under
because they overbuilt, over-
equipped or overstaffed, but it's
a common trap.
"I've looked at hundreds and
hundreds of surgery centers,"
says Mr. Péo. "People say, I've
only got a thousand cases right
now, but if I build this surgery
center, we'll immediately be up
to 3,000 or 4,000. They build
too big for the case volume they
have and the overhead eats
them up. They're equipped too
big, staffed too big, paying rent
on something too big, and they
never really get out from underneath that."
Cautious, realistic planning is essential, says Mr. Zasa: "Measure
twice, cut once. Make realistic projections based on the actual
cases that physicians do, and then discount those down."
You should also be looking at each physician's payer mix, and
what types of cases he is doing, says Mr. Péo. Then kick out the
cases that aren't typically done in a surgery center, or that aren't
reimbursed well enough or that are typically done in an office.
Then whittle that number down to an even more conservative
estimate and build based on those numbers.
And if some surgeons are saying they're not interested in buying
into the center, but that they'll bring their cases? "Don't count on
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A U G U S T 2 0 1 5 | O U T P A T I E N TS U R G E R Y. N E T
z TOO OPTIMISTIC? Overbuilding can
result in overhead that eats ASCs alive.