FREQUENTLY ASKED QUESTIONS
You have questions, we have answers.
Below are some common questions we see regarding starting a facility, working with Arise Vascular, and deciding which facility model to move forward with. For all other questions please contact us:
Q. What is the most common reason new facilities fail?
A. An accurate financial forecast/Pro Forma was not performed. At Arise Vascular, we project future revenues from very specific volume & billing data unique to you and your market. We provide realistic and conservative expectations and don’t recommend moving forward with a project unless it makes financial sense for the physician.
Q. What is the most common mistake facilities make when contracting with insurance companies?
A. Not performing detailed reimbursement projections for each insurance product/network. Payors use different procedure discounts, modifiers, etc. in each unique fee schedule that will impact the facility’s revenue based upon the anticipated procedure mix of the facility.
Q. How much cash do I need to start my facility?
A. Every project is unique, but it typically depends on the down payment needed for your tenant improvement and equipment loans. We provide you these detailed projections in our complimentary proforma.
Q. What guarantees do banks typically require?
A. Here is an example:
For a 1 million-dollar facility project, with three physicians, how much will the bank require in personal guarantees from each physician?
Without the Arise Vascular debt guarantee, typically each physician will personally guarantee 100% of the full 1 million, joint and several.
With our debt guarantee, banks typically only require physicians to guarantee 50% of their pro-rata ownership, not the full million- joint and several.
We look forward to making arise vascular your preferred healthcare management partner!
Q. Which lab setting will make me the most money?
A. On most endovascular procedure CPT codes, OBL settings typically offer marginally higher reimbursement rates. This can be misleading because when accounting for the facility fee, some procedures pay significantly higher reimbursement rates. We have made an easy to read spreadsheet with commonly billed endovascular CPT codes to break it down.
Q. What are the advantages of Office-Based Labs?
A. Per CMS (POS 11), an Office setting is a Location, other than a hospital, skilled nursing facility (SNF), military treatment facility, community health center, State or local public health clinic, or intermediate care facility (ICF), where the health professional routinely provides health examinations, diagnosis, and treatment of illness or injury on an ambulatory basis. Office-based Labs offer:
• No additional state inspections or accreditation. (Most States)
• 100% Physician-owned in states that follow the Corporate Practice of Medicine laws.
• More lenient flexibility on lab buildout solutions.
• Marginally higher reimbursement on Endovascular procedures.
Q. What are the advantages of an Ambulatory Surgery Center?
A. Per CMS (POS 24), an ASC setting is a freestanding facility, other than a physician’s office, where surgical and diagnostic services are provided on an ambulatory basis. Ambulatory Surgery Centers offer:
• ASCs bill “facility fees” separate from professional services.
• Ability to collect payment on supplies in certain situations.
• Ownership/risk can be shared with corporations.
• Strict licensing and accreditation measures mean more prestige with patients & insurance payors.
• Wider latitude on procedures that can be performed.
Q. What is a Hybrid Facility?
A. A hybrid facility is a location where 2 separate entities can operate. As the name suggests, it is both an Ambulatory Surgery Center & Office-Based Lab. Typically, the clinic will be set up to operate the ASC on specific days and the OBL on others. This allows the physicians to see their normal endovascular patients routinely while widening the latitude to perform more invasive cardiac procedures when needed.
For more information on each type of facility please contact our business development department.
Q. What are the benefits of partnering with a management company?
A. You can think of Arise Vascular as your trusted guide to the OBL/ASC world. We provide flexible options to mitigate financial risk while getting your facility open as quickly as possible. We handle the business side of operations, which allows physicians to do what they do best – treat patients. We are experts in the industry and are familiar with the ins & outs of site selection, accreditation, equipment purchasing, managed care contracting, & more. Our physicians enjoy corporate level discounts with national suppliers. We interview, hire, & employ your staff under the Arise Vascular umbrella so you can focus on your patients.
Q. Why choose Arise?
A. By partnering with Arise, you will work directly with the executives of the company each day on the development and operations of your OBL. Our executive team’s combined experience and expertise span 50+ years with national healthcare companies such as HealthSouth, Surgical Care Affiliates, and HCA. We have harnessed this expertise to form a company that is ethical, transparent, and nimble enough to make each of our facilities hugely successful.
Q. Who will I be working with?
A. At Arise, physicians work directly with our CEO, CFO, and Chief Development Officer on a daily basis to ensure the success of your new facility. We have other corporate departments including HR, Accounting, Credentialing, Billing, Marketing, & more who typically work behind the scenes, but are available resources to all physicians & their staff.
Q. What does PEO mean?
A. A Professional Employment Organization (PEO) is an organization that partners with employers and offers shared responsibility for managing employees. Arise offers PEO services including HR, HIPAA Compliance, Payroll, Benefits, & more. To learn more please contact us.
For more information on each type of facility please contact our business development department.
READY TO BE INDEPENDENT?
The next step towards independence starts with requesting a complementary pro forma!
