Hospital partnership

November 5, 2010

Determine whether it is wise to enter into a hospital partnership.

Q: The hospital in our area wants to buy 51% of our ambulatory surgery center. Is that a good deal?

A: How well do you salute? When a deal like this is offered, the ones doing the offering are announcing that they will make all the decisions. It doesn't matter if all the minority votes together; they get to salute. If the center is a management headache or needs more capital (or something else the buyer has that you can't get) to become a super profit-making machine, this deal may be worth it. If you are doing well, manage the center without too much stress, and you want to control its availability and service, you should pass.