Learning Our Business Lessons From History

BY JOE DELLIGATTI

I believe that if there is one basic tenet of all business it is be prepared for change or die. History provides us with seemingly endless examples of this truth — whether it was the buggy whip manufacturers in the early part of the last century or the VCR manufacturers more recently — businesses need to be prepared to change or adapt. And so it is as well in the healthcare market segment that we call outpatient surgery. In fact, I would contend that the confluence of technological advances, reimbursement volatility and regulatory upheaval collectively force an ambulatory surgery center (ASC) to be more prepared for change than almost any other, in or outside of healthcare.

So whether you are contemplating starting a new ASC or have an existing well-run and profitable center, you should build in or add on to your business plan some amount of adaptability. No one should want to invest in and run a business that is subject to the whims of so many others without planning for contingencies. These contingencies may span a number of different scenarios: adding new and different equipment and specialties based on new procedures, increasing the size of your facility footprint to take advantage of a growing population, adding new non-surgical services to your business, etc. These are just a few of the ways to protect your investment.

Just as the VCR manufacturers realized (and the buggy whip makers didn’t), sometimes technology alone can eclipse your business. When the DVD became the standard for pre-recorded entertainment, VCR manufacturers jumped on the technology and quickly offered new products. They knew that if they did not do this, their markets and thus their businesses would collapse. Now we have to assume that these same companies are preparing for the online movie and entertainment onslaught.

Now let’s assume that you believe that you are totally protected from the elements of change that you have built in the contingencies to your plan. Does this mean that you should sit back and cruise? I would say no. Most ASC entrepreneurs are excited about building businesses. They have invested in and nurtured their centers to the point that they are extremely successful and running smoothly and efficiently. Well, now what?

I believe that many of these people will want to explore new business opportunities — especially if they are businesses that are related or interconnected to their ASC or practice. This is just another form of contingency and helps keep an owner excited and invested. As an example, many businesses deploy line extensions successfully (the salon owner that gets into the day spa business) and an ASC business can take advantage of this practice, as well.

There are many ways to look at your ASC business and develop a substantive approach for protecting your investment and there are many people that you can talk to that have ideas and approaches which have worked for them. However, there are not many places that you can go where you can get a comprehensive download of these ideas from the people who know them best. One place where you can take advantage of this information is at the today’s surgicenter conference. Over the years, this conference has grown to be one of the best sources of the latest and greatest information on the ASC business delivered by some of the best minds in the industry. Many have taken advantage of this program in the past and you can, too. Please join us in Las Vegas in September (and leave your buggy whips at home!)

Joe Delligatti is the former director of new business development for Stryker Corp. and ran its ASC marketing programs for seven years. He is now a partner in Physician Planning and Consulting and works with doctors and hospitals, assisting them in various phases of planning for outpatient services including real estate development, financing and business feasibility studies. 

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