Making the decision to buy into a surgery center is a significant financial and career move for any physician. While it can be a profitable investment and a way to enhance patient care, it also requires careful planning, risk assessment, and strategic decision-making. This is not a decision to make alone.
Having an experienced financial advisor on your side can help ensure that this investment aligns with your broader financial goals and long-term wealth strategy.
Surgery centers, or ambulatory surgery centers (ASCs), are physician-owned outpatient facilities specializing in same-day surgical procedures.
Unlike hospitals, ASCs operate with lower overhead, allowing for greater efficiency, reduced costs for patients, and potentially higher returns for physician investors. However, these benefits come with financial complexities that require careful analysis.
For many physicians, the primary incentive to buy into a surgery center is the potential for additional income. However, financial success isn't guaranteed.
The key to making a surgery center investment work is understanding not just the potential returns but also the financial risks, operational costs, and legal considerations.
An experienced financial advisor can help you assess:
The typical buy-in cost for a surgery center ranges from $100,000 to $700,000, but financing this investment isn’t as simple as taking out a business loan. Most loans for surgery center investments are personal loans, meaning they are directly tied to your financial profile.
Without a clear financial plan, these uncertainties can pose significant risks. A financial advisor can help structure your finances to mitigate these risks and ensure your investment is sustainable.
Physicians considering buying into a surgery center must also weigh the pros and cons of investing in a new facility versus an existing one. Each option presents different financial risks and rewards:
| Factor | New Surgery Center | Established Surgery Centers |
| Pros | Updated technology, new infrastructure, potential for high future returns. | Predictable revenue, lower risk, existing patient base. |
| Cons | No historical financial data, longer ramp-up period before profitability, potential for unforeseen expenses. | Possible maintenance and upgrade costs, higher buy-in price, existing operational challenges. |
A financial advisor can conduct a thorough financial analysis to help you determine which investment is right for you.
Before buying into a surgery center, physicians must navigate state and federal regulations such as:
These legal factors can directly impact your investment and should be carefully reviewed with both legal and financial professionals.
Success in surgery center ownership is not just about buying in at the right price; it’s about ensuring the investment aligns with your broader financial goals. Working with a financial advisor ensures your investment is structured to maximize returns while minimizing unnecessary risks.
At Spaugh Dameron Tenny, we specialize in helping physicians build comprehensive financial plans that incorporate investments like surgery centers. We can help you assess whether this opportunity fits your overall strategy and create a plan that ensures long-term financial success.
It can be, but success depends on factors like the buy-in cost, revenue potential, ownership structure, and legal considerations. A financial advisor can help assess if it’s the right move for your situation.
Most surgery center buy-ins require personal loans, which are tied to your financial profile. Careful planning ensures you can manage the debt without jeopardizing your overall financial health.
Risks include high upfront costs, potential delays in profitability, capital calls, and regulatory challenges. Working with a financial advisor helps mitigate these risks.
Learn more about the pros and cons of buying a surgery center.
New centers offer potential for growth but come with higher risk. Established centers provide predictable revenue but may have higher buy-in costs. A financial advisor can analyze your options.
Review these key questions doctors should ask before investing in a surgery center.
If you're considering buying into a surgery center, let’s discuss how to make this a strategic and financially sound investment. Contact Spaugh Dameron Tenny today to schedule a consultation.
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Shane Tenny is the managing partner of Spaugh Dameron Tenny. Along with hosting the Prosperous Doc® podcast, Shane has a true passion for behavioral finance, helping clients and audiences understand how to develop successful strategies based on their unique temperaments. An accomplished and highly engaging speaker, Shane is regularly interviewed for television and podcasts, is actively involved in the Financial Planning Association®, and contributes to industry advisory boards.
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