Facility Development & Management, LLC: Edward Hetrick, CEO

by HCE Exchange on August 19, 2010

Edward Hetrick was part of a small physician practice management firm when the group was asked to help develop its first ambulatory surgery center in 1992. Over time, that aspect of the business grew and Hetrick eventually branched off from the original business to found Facility Development & Management. FDM develops, manages, and has equity interest in ambulatory surgical centers. They primarily do business in New Jersey, but are expanding into New York as the certification process for ambulatory centers in that state becomes more favorable. The company has partnered with clients to develop more than 45 ambulatory surgical centers throughout the US with a wide variety of specialty services since 1992. All of their centers are Medicare certified and/or state certified.

“For the first eight years, all we did was develop centers and move on,” says Hetrick. “In 2002, one of our clients asked us to stay and continue managing the center. Since then, we have started to provide full-service management where we actually place an administrator at the center who is our employee on a full-time basis.”

Growing Ambulatory Surgical Centers

A typical FDM center has been a two operating room facility, most often owned by physicians. The size of ambulatory surgical centers is growing, however. A three or four operating room facility that is joint-owned by physicians and a hospital might be more typical of those being developed today. FDM usually maintains a minority interest of 10% of less. “We require that we have an equity interest because part of our job is to act as a mediator between the hospital and the physicians,” says Hetrick. “The hospitals want us to manage the physicians and the physicians want us to run the center in a manner unlike a hospital. There is some traditional hospital/physician conflict and part of our role there is to mediate that.”

As well as development, FDM consults and helps existing surgery centers bring in new doctors as many of the original partners are getting to the age of retirement. “We are working on the restructuring, changing ownership of the centers,” says Hetrick. “I think many of the centers up and running are going to be taking a look at ongoing operations, ownership structure, and what can be done to improve the quality of cases.”

As surgical centers have partnered with insurance plans, effectively bringing the reimbursement for procedures down since they are no longer paid as out-of-network providers, they look more and more to FDM for management solutions, as well. “When the reimbursement tightens up, the management practices have to tighten up also,” says Hetrick. “The centers will be viewing professional managers and management companies much more favorably because we have the experience, we have the expertise, and we have the personnel who can come in and effectively drive efficient management of those centers.”

FDM has picked up several established centers in recent years that are simply looking for cost-effective management solutions.  “We are taking them through the process, making them change the culture, and putting in the necessary processes/systems that they will need as they move into the future,” Hetrick says.

What Technology has Made Possible

Advancements in technology have been part of the impetus for the growth of ambulatory surgery centers in recent years. “At one point in time, the technology was so big and expensive that it had to be centralized in a hospital where both the patients and the physicians could come together in one location to utilize it,” says Hetrick. “But technology has moved along to the point where it is now getting small enough to be moved out of the large institutions and into the free standing setting.”

Hetrick sites spinal surgeries as just one example where the technology has played a drastic role in what is now possible. “We are performing procedures that ten years ago would not have been possible. As a direct result of technology, now they are routine,” he says.

The Future of FDM

Hetrick says his company has come this far via word of mouth, and in many respects that’s how he expects to see it continue. “We’ve started some marketing efforts to a certain degree. It’s minimal,” he says. “We will do a certain amount of display and trade shows. I also speak at several conferences. It’s really about getting our name out there, getting it recognized, so that when someone mentions needing our services, someone else says, ‘Oh yeah, we use FDM,’ or ‘They are someone you should look at.’ They go, ‘Oh yes, I’ve heard of them.’ We’re really looking at the basis of referrals, but to get our name out there so when we are referred there is name recognition.”

-by T.M. Simmons

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{ 1 comment… read it below or add one }

Janice Clayson June 1, 2015 at 2:21 pm

Hello! I was reading through this link: http://www.healthcareix.com/2010/08/facility-development-management-llc-edward-hetrick-ceo/

I am part of a new & innovative company that not only addresses discharges from hospitals, but surgical centers as well. As I’m sure you are aware, hospitals face the penalties for readmissions. We believe at mediconnex that we can help to divert those penalties and improve HCAPHS.

As a surgical center, you do not have those penalties, but am sure you look for patient satisfaction & ease of use which mediconnex can help you achieve. Please take a peek at our website and click on Urgent Care along the top. Feel free to search the entire website…you may feel that we’d fit wherever you see it needed!

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