Surgical Development Partners is structured as
a privately held company which affords us an advantage in the marketplace:
long-term commitment and thinking.
We do not face the same pressures that Wall Street places on the
publicly traded companies in our field. Wall Street requires that
these companies strive to have majority ownership positions and
consolidation rights in their partnerships – leading to a
very rigid model with questionable value propositions for physician
investors over time. Additionally, Surgical Development Partners
is not consumed with making the next quarter’s earnings targets,
but, rather, we take a much longer outlook in our decision making
Our capital structure and culture allow us to enter into the right
partnerships with a long-term focus. While financial returns are
important to our physician partners, their overriding objectives
in undertaking a hospital or ambulatory surgery center project remain:
• More control over their practice of medicine
• Physician convenience
• Better patient and patient family outcomes and experience
Our interests are aligned with our physicians, and our partners
appreciate knowing that their development and management partner
is invested and involved for the long run.
Our capital structure and physician-centric
approach allow us greater flexibility when crafting physician and
hospital partnerships. A controlling interest is not our goal. We
believe that because of the continued substantial contributions
that physicians make to the partnerships, it makes sense for the
physicians to have a majority of the ownership interest and profits.
We believe that Surgical Development Partners’ minority interest
positions in its projects recognize the important role of the physician
and ensure that incentives are aligned with our physician and hospital
partners for the long term.