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
Typically, a 1% ownership is sold for $9,000. A 5% ownership in the LLC represents a $45,000 investment by an individual Member.
Operational Structure
The ASC is operated in accordance with SurgCenter’s Standard Operating Agreement. This document is designed to be understandable and user friendly and has been successfully used in all of our projects.
The combined investment of the Members creates an initial capitalization of $630,000 – $900,000. 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 | $200,000 |
| Working Capital | $400,000 |
| Minor Equipment/Supplies | $150,000 |
| Contingency | $150,000 |
| Total | $900,000 |
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.
