BY BARBARA PINCKNEY
Physicians from two Saratoga County medical
practices are teaming up to build the Northway
Surgery and Pain Center in Clifton Park.
According to documents filed with the state
Department of Health, which has given preliminary
approval for the project, the ambulatory
surgery center, which would focus on pain
management, would be built on vacant land at
1596 Route 9, south of Northway Exit 9.
Costs to construct and equip the 9,400 squarefoot
building are estimated at about $1 million,
according to the documents.
Northway Surgery will be 95 percent owned
by an entity called NSPC Holdings LLC, a joint
venture between the partners in the Albany &
Saratoga Centers for Pain Management–Dr.
Edward Apicella and Dr. Martin Ferrillo–and
the partners in New York Pain Management
PLLC–Dr. Charles Gordon and Dr. Quenton
Phung.
According to the filing, Apicella and Ferrillo
each own 35 percent of NSPC Holdings and Gordon
and Phung each own 15 percent. Apicella will
be medical director of Northway Surgery.
The remaining 5 percent is owned by Heritage
Ambulatory Surgery Center LLC., a new company
formed to provide consulting and administrative
services to Northway Surgery. The partners in
Heritage are Dr. Robert Tiso, Joseph Cantino, Dr.
Eric Tallarico and Dr. Nameer Haider.
Although a Certificate of Need filing put the
projected start-up date on Dec. 31, it is not clear
when Northway Surgery will open. Tom Pascarella,
practice administrator for the Albany &
Saratoga Centers for Pain Management, said an
update should be available in mid-2015.
Apicella and Ferrillo currently practice interventional
pain management, using minimally
invasive techniques, in Saratoga Springs and
Albany. Gordon and Phung have practice locations
in Clifton Park and Glens Falls. In 2012,
the most recent year cited in the application,
the four physicians did a combined total of 9,700
office-based procedures.
They told the state they expect to do about
8,200 procedures at Northway Surgery in its first
year of operation–because some surgeries will
remain office-based–and as many as 10,000 in
year three. The partners estimated an average
cost per visit of $378 in year one.
The center’s primary service area would cover
Saratoga, Albany, Schenectady, Rensselaer, Warren
and Washington counties, with the majority
of patients coming on referral from primary care
physicians. Using National Center for Health
Statistics estimates of chronic pain prevalence in
the adult population, the partners estimated that
about 182,000 people in this six-county region
would benefit from their services.
The ambulatory surgery center would have
four procedure rooms, and employ about 22
people. Emergency support would be provided
by either Saratoga Hospital or Ellis Medicine
in Schenectady, both of which are about 20
minutes away.
According to the application, the partners
expect revenue of $6.3 million in their first year
of operation, with expenses of about $3.1 million.
This would put net income at about $3.2
million. By year three, revenue is projected at
$7.6 million, and net income at $4 million.
Working capital requirements, estimated
at just under $600,000, will be covered by the
partner’s personal assets and a bank loan. A
bank loan also is expected to finance most of
the $1 million project cost, according to the
documents.