With the growing popularity of surgeries performed in an outpatient setting, ambulatory surgery centers (ASCs) have been on the rise in the market. However, critics to the establishment of ASCs have argued that the clinics placed an economic burden of general hospitals. Because the ASCs focus on a limited specialization rather than perform a variety of procedures compared to the general hospitals, patients of higher socioeconomic status are attracted to the ASCs. The patients that cannot afford the higher cost of ASCs are treated by the general hospitals, leaving the latter to bear the expensive costs of treating poorer and possibly sicker patients.

The business proposal would create a contractual network between a newly designed ASC and the local hospitals. The multispecialty ASC, called the New Orleans Center (or “the Center”), will be serving the population of New Orleans, Louisiana. The joint venture model would allow for the Center to reduce operations expenses and refer patients to services outside of the specialties offered by the Center. In an effort to encourage patient mix in the Center and thus reducing the economic burden on the general hospitals, the model would also include a patient screening. The proposed business plan would serve the New Orleans population that would be in need of services in the area of gastroenterology, urology, and pain management.