Is Your Business Dated?

Is Your Business Dated?

By Lisa Freeman

I would encourage ASC owners to look beyond managing the operations of the ASC to managing the business of the ASC. In addition to preparing an annual budget, ASC leadership should update the original business plan and perform some long range planning.

The ASC’s annual report should include an analysis of the industry including legislative and reimbursement developments, competition factors both nationwide and in your specific market, and an evaluation of cases performed both now and expected in the future at the facility.

The report should finish with a list of recommendations which might include anything from targeting a new specialty for the center, developing a plan to build more ORs or expand the building, to opening discussions with an outside company regarding the sale of a portion of the operations while the value of the center is at its peak.

The updated business plan should specifically address the following factors which contribute to the lasting value of an ASC:

• On-going physician recruitment.
• Cash distribution policy and capital expenditures necessary for growth and equipment upgrades 
• Balance sheet management, particularly over cash collections.
• Decision to seek accreditation.

Take care of the business side of your investment and you’ll continue to reap the rewards of a profitable health care facility that serves the needs of your community for years to come.

Breaking Down Barriers

By Gayle Evans, RN, MBA, CNOR, CASC

Looking at and understanding the complete picture in ASC management is extremely critical. I went into a surgery center recently where there was a clear division of services between the clinical and the business office.

It was as if the two never communicated. Surgery center management are often so involved in the trenches with either the business or clinical aspects of running the center that there may be blinders to the overall production of the center.

The management team should provide tools that will bridge the clinical operations and business office operations. If an ASC is entertaining the use of a management company they should have the company identify the specific services that can be brought to the table. It is important to bring the regulatory compliance component in addition to the assistance with ongoing staff education. Staff competency oversight is critical to reduce the risk of the center and by providing streamlined ongoing staff education, competency can be maintained.