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Forming
Your Corporation and Creating Your ASC
We have developed numerous surgical centers. Chances
are, this will be the first time you have participated as an investor-owner
in an ASC. SurgCenter Development will provide the template for
success, and will work with you to customize the ASC to meet the
needs of the partners and local market.
Typically,
the process involves:
The recruitment of physician investors and legal formation of the
company. Surgical specialties represented in previous projects have
included Pain Management, Orthopedics, Ophthalmology, ENT, Podiatry,
Gastroenterology, Dermatology, General Surgery, Gynecology, Neurology, Spine Surgery, Cosmetic
and Reconstructive Plastic Surgery, Urology and Hand Surgery.
The ASC Project is formed as an LLC. Members purchase 100% of the
company’s shares. Typically a 1% ownership is sold for $5,000
- $7,000, so that a 5% ownership in the LLC represents a $25,000
- $35,000 investment by an individual Member. Usually there are
three payments made over a six-month period.
The ASC is operated in accordance with the Operating Agreement.
This document has been refined by over 200 physicians and attorneys,
and is customized for each ASC project. All members have voting
rights and receive income distributions based on their percentage
of ownership in the company. SurgCenter Development is a vested
partner that purchases 35% ownership and then provides no-fee consultative
and management services to the Members and ASC staff. The SurgCenter
Model does not require the use of outside management services.
The combined investment of the Members creates an initial capitalization
of $500,000 - $700,000. This amount may vary depending on the
size and scope of the project. Based on previous surgery centers
we have helped develop, this initial capital is allocated as follows:
| Start-Up Expenses |
$150,000 |
| Working Capital |
$350,000 |
| Minor Equipment/Supplies |
$50,000 |
| Contingency |
$50,000 |
| Total |
$600,000 |
SurgCenter Development will assist the Members in securing financing
for equipment purchases and tenant improvement costs. In many of our
previous ASC projects, tenant improvement financing has been secured
with no or limited personal guarantees required of the physician owners.
Equipment financing is available through equipment leasing companies
secured by the equipment.
SurgCenter Development: Empowering Surgeons |
