Did you know that, after an initial drop during the early part of the COVID-19 Pandemic, nonessential surgery rates returned to normal? This occurred by July 2020, when the rates were the same or even surpassed what they had been in July 2019.
Considering how quickly these rates went back up again, it’s a great time to build a surgery center. However, if you aren’t sure how to get started, this can be stressful.
Fortunately, in this article, we’ll review the process of building a surgery center from the ground up. Finally, you can start your surgery center and make money in the surgery industry. Read on to learn more.
Step 1: Feasibility Analysis
The first thing you have to do before building a normal or ambulatory surgery center is a feasibility analysis. This is where you determine whether this is an economically feasible endeavor. To get started, you have to gather data.
The first data set you have to gather is the type and number of cases you expect you’ll perform in your surgery center. The second is what facility payment groups the procedures will fall into.
Once you’ve done this, you can calculate what the procedure’s total value will be within your proposed surgery center.
After you know what your expected revenue is, it’s time to calculate how much it will cost to build the surgery center. If you’re building it from the ground up, you’ll have to add the building shell and land costs.
This will be somewhere around $60 for each square foot. If you want to include consulting, engineering, and architectural fees, you should use the figure of $138 for each square foot.
It’s also smart to reserve, for contingencies, 10%. You’ll also have to think about variable costs.
Step 2: Development and Design
The next step when you build a surgery center is development and design. To get started, contact the state in which you’re planning to build the surgery center. This way, you’ll know which steps you need to complete and how to comply with the federal and state requirements that are necessary.
The majority of states will send an information packet to you that details this process. It will also advise you of any significant building requirements.
During this step, you should also start interviewing architects to hire one. Hire an architect who has experience building surgery centers in your state.
The architect and engineer should commit to providing you with an engineered plan that’s fully planned. This way, you’ll avoid the problems and delays that come with a “design build basis,” which you should avoid.
When deciding how to build your advanced surgery center or another type of surgery center, think about the procedures you’ll carry out there. Think about your specialty and how many rooms you need for what procedures.
Once you have all this information, you’ll have what’s called a program. After you’ve developed it, you can develop the floor plan layout.
Many states require seeing the plan before you start building. Check to see what the rules are with this in your state before proceeding and follow these rules.
Step 3: Bidding and Construction
Next, you can go into the bidding process. This is what many owners are most comfortable with, but you can always go with a construction management agreement. While we recommend the latter, if you prefer bidding, we have some recommendations.
If you go the bidding route, you should get three bids from contractors. Then, have your consultants and architects choose the right contractor for the job.
Once a contract has been awarded, ensure that you sign, for the project’s construction, a contract. This should lay out details about payment and project expectations.
During the construction itself, certain things should occur.
The consultants and/ or architect should provide onsite visits that are regular. They should release a report on a basis that’s weekly or bi-weekly so everyone can know what progress is being made.
There should also be construction meetings that occur on an at least bi-weekly basis. These meetings should include the owner’s representative, general contractor, and subcontractors.
Step 4: Selection and Acquisition of Equipment
The equipment you’re going to have in your surgery center is something you should consider at the beginning of construction. As for the selection and acquisition of the surgery center equipment, this can be a process that’s time-consuming and frustrating.
For this reason, we recommend that you have someone with experience doing this to help you with this process.
Note that, when word gets around that you’re constructing a surgery center, you’ll start getting contacted by people who want to do business with you. This will take a lot of time to manage.
For this reason, we recommend that you hire someone to answer these calls and help you choose the right companies with which to do business.
Step 5: Licensure and Certification
Finally, you need to get the licensure and certification required so you can run your surgery center legally. This is a complex process that should occur between four to five months before you’ve completed your surgery center project.
It can help to hire someone who’s an expert in these matters so you can make sure you’re getting the licensure and certification required by the state your surgery center is in and the federal government.
Need Equipment for Your Surgery Center?
Now that you’ve learned how to build a surgery center from the ground up, you might be thinking of the equipment you need for it. In this case, you should look no further than Heartland Medical Sales & Services, LLC.
We sell and rent a large number of pieces of medical equipment. This equipment includes surgical tables, surgical headlights, surgical microscopes, and more.
To learn more about the surgical medical equipment we have available, contact us now.