Typical Project requirement:
$5, 900, 000 investment.

Typical Financing:
$4, 800, 000 on a limited recourse basis (guarantees limited to each partner’s percentage interest).

Typical Equity/Capital:
$1, 100, 000 with partner cash contributions.

Individual contribution (for 10% ownership in the center):
Equity of $110, 000 (10% x $1, 100, 000). Limited guarantee of $480, 000 (10% x $4, 800, 000).

Typical cost breakdown (construction, equipment, furnishings, supplies, and working capital reserves).

The total cost has four main components:

• Architectural and engineering design ranges between $180, 000 and $265, 000. This includes obtaining state approvals and completion of the accreditation process.
• Construction costs are approximately $165-$255 per square foot and the typical size is 9, 000-11, 000 SF (between $1, 500, 000 and $2, 800, 000). ASCOA contracts for construction management and provide oversight of the project.
• Equipment and furnishings generally cost between $2, 000, 000 and $3, 000, 000 depending on the medical specialties in the surgical facility.
• Working capital of $900, 000-$1, 100, 000 is required. These funds are necessary to pay regular operating expenses–rent, staff salaries, utilities, etc.–until facility fee collection is sufficient to cover expenses (usually six months after beginning operation).

Total cost: Between $4, 580, 000 and $7, 165, 000.