Ambulatory Surgery Centers

Recent economic news has ranged from gloomy to apocalyptic. The economic downturn has affected the psyche of the American population and created an ever-present pessimistic mood, which in turn has changed consumer behavior. Those who used to spend have put away their wallets, causing widespread unemployment and drastic declines in business activity. The circular nature of the business cycle ensures a downward spiral that is difficult to reverse.

No industry is immune to the effects of consumer pessimism — the ambulatory surgery center (ASC) industry included. Fear causes patients to delay non-medically necessary surgeries. When possible, necessary surgeries get reclassified as elective and delayed, or don’t get scheduled at all. An increasing percentage of ASC patients have high-deductible plans that require a large patient financial contribution — deductibles that those without a steady income cannot pay. The newly unemployed also become the newly uninsured.

In spite of these problems, ASCs are operating through the financial crisis with surprising resiliency. Before the economic downturn began, the ASC industry was already restructuring itself to meet reimbursement pressures from the government and other payors. Many ASCs emerged from the restructuring period leaner, more efficient and less leveraged, giving these centers a leg-up and a much stronger shot at outliving the economic crisis.

Let’s look at some of the key factors at play here: