Forming Your Corporation and Creating Your ASC
We have developed numerous surgery 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:
Physician Investor Recruitment
The recruitment of physician investors and legal formation of the company are traditionally the first steps to begin the process.
Establishment of the ASC
Each ASC project is formed as an LLC. Members purchase 100% of the company’s shares. Typically a 1% ownership is sold for $6,000 – $8,000, so that a 5% ownership in the LLC represents a $30,000 – $40,000 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 the physicians and attorneys in 185 surgery center partnerships 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 38% 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 $600,000 – $800,000. 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:
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.