JVs have emerged as an effective strategy to share both risk and reward, while avoiding the duplication of services between physicians and hospitals. JVs are common in today’s healthcare environment, aiding in provider recruiting and strengthening the bonds with the medical staff.
When considering a JV, you are faced with financial, strategic, political, and legal issues that can seem overwhelming. ECG can be your guide through the process; we have experience across the broad spectrum of business arrangements. Our services include:
- JV opportunity identification.
- Financial, strategic, and operational assessments.
- Governance, equity, and operational structure design.
- Business model feasibility and evaluation of alternatives.
- Detailed business plan preparation.
- Stakeholder meeting presentation/facilitation.
- Implementation assistance.
ECG is ideally suited to help you in JV development and implementation, as demonstrated by our track record of assistance in forming successful JVs for centers focused on ambulatory surgery, cancer care, radiation therapy, orthopedics, and other specialty services. Our depth of experience, in conjunction with our critical financial and operational skills, can help you navigate these complex arrangements while understanding and accommodating the differing perspectives of the prospective partners.
Assisting a hospital with business planning and implementation of a JV ambulatory surgery center (ASC). Expand Minimize
ECG was retained by a hospital and physician investors to develop a viable joint venture structure for a new multispecialty ambulatory surgery center. We drafted key operating assumptions, created an organizational model, and projected financial performance based on the requirements and objectives of the stakeholder-owners. Using the detailed implementation work plan developed by ECG, the joint venture accomplished a successful and on-time opening of the ASC.
ECG assisted a 250-bed community hospital with business planning for a joint venture between the hospital and radiology group for an existing, hospital-owned outpatient imaging center. We developed the conceptual model of the joint venture as well as prepared financial statements and related analyses. Once a plan was advanced, ECG facilitated agreement between the JV parties on the major terms of the proposed transaction.
ECG was hired by a hospital to develop the joint venture infrastructure for a new ASC, which included creating a governance and management structure and detailed financial projections. After establishing the JV framework, we worked closely with physicians to gauge their interest in an equity position. Once interested physician investors were identified, we prepared the JV documents and oversaw the investor subscription process.
ECG was engaged by a hospital, a school of medicine, and physicians to help develop the business case for a JV for a comprehensive, stand-alone cancer hospital. Specific tasks included formulating a detailed business plan that included the management structure, market analysis and volume projections, physician and support staff estimates, facilities and capital requirements, and funds flow and financial projections. The resulting plan served as a guide to implementation.