Dawn Q. McLane, RN, MSA, CASC, CNOR, chief development officer of Nikitis Resource Group, says the following are usually the three areas of financial support needed for de novo ASCs.
1. An operating line of credit to pay the bills until the center begins collecting enough money every month to pay the expenses.
"This can take several months up to 18 months depending upon how fast the case volume ramps up, how fast Medicare certification and accreditation (if required) are achieved and how aggressive the center is in getting all other payors on board once Medicare certification is achieved," says Ms. McLane. "Managing payors by obtaining a letter of agreement with payors who are willing to do this for cases performed wherever possible, until the contracts are in place, can assist the center in getting payment in advance of contracts."
2. Financing for the building or the tenant improvements.
3. Financing equipment.
Learn more about Nikitis Resource Group.
Read more insight from Dawn McLane on de novo ASCs:
- 3 Critical De Novo ASC Mistakes
- Due Diligence, Expert Guidance Required for De Novo ASCs
- Factors Contributing to De Novo ASC Decline
1. An operating line of credit to pay the bills until the center begins collecting enough money every month to pay the expenses.
"This can take several months up to 18 months depending upon how fast the case volume ramps up, how fast Medicare certification and accreditation (if required) are achieved and how aggressive the center is in getting all other payors on board once Medicare certification is achieved," says Ms. McLane. "Managing payors by obtaining a letter of agreement with payors who are willing to do this for cases performed wherever possible, until the contracts are in place, can assist the center in getting payment in advance of contracts."
2. Financing for the building or the tenant improvements.
3. Financing equipment.
Learn more about Nikitis Resource Group.
Read more insight from Dawn McLane on de novo ASCs:
- 3 Critical De Novo ASC Mistakes
- Due Diligence, Expert Guidance Required for De Novo ASCs
- Factors Contributing to De Novo ASC Decline