The ASC's Future in Healthcare

By Jeff Peo

As I talk with people in the ASC industry - administrators, doctors, vendors and others - it seems that every conversation turns to the future of the place of surgery centers in the healthcare system.  The conversations turn to speculation about the status of healthcare reform, payer reimbursement rates, and ballooning government regulations.

While we need to look ahead to be prepared for what may come, we cannot forget to focus on three core concepts that, if followed, will ensure success today, and go a long way to ensuring success in the future.  

Control expenses:  Set benchmarks for wages and benefits and supplies that are appropriate for the center*.  Track actual spend on these key categories by case-costing every case.  Educate the owners of the center on what is being done and the results of the findings.  If you are constantly losing money on a type of case, then quit doing that type of case.

Continue to grow the center:  Add new, financially viable, cases to the center to help the center to grow.  Put a plan in place to recruit new partners every year.  Enlist the help of the existing surgeons, that already do cases at the center, to identifying potential partners.

Participate in local and national ASC organizations and meetings:   Information is key to keep everyone in the industry aware of pertinent new or pending regulatory issues.  These resources are well worth the cost of time and dollars that centers invest to participate, and are helping to unify the ASC message in the public space.  

We cannot let the unknowns of the future keep us from performing today.  A focus on the controlling expenses and recruiting additional cases to the center will help ensure viability of the ASC today and in the future.  Participating in ASC groups will ensure that as any regulatory changes come to our industry, we will have the information that we need to meet those changes appropriately.  

* These benchmarks will vary depending on several factors, including but not limited to, out of network status, specialty mix, and geographic location.  Be realistic in setting those targets.  They should be hard to achieve. 

Jeff Peo is the vice president of acquisitions and development for Ambulatory Surgical Centers of America (ASCOA). He can be reached by at jpeo@ascoa.com or (781) 635-5750.