Becker's ASC Review

55 ORTHOPEDICS Medtronic leaves knee, hip market with Responsive Orthopedics divestiture: 5 details By Laura Dyrda M edtronic plans to divest its orthopedics business after unsuccessful attempts to break into the knee and hip implant arena, according to the Minneapo- lis/St. Paul Business Journal. Five things to know: 1. Medtronic acquired Responsive Orthopedics in 2016 and launched a joint replacement unit that aimed to provide low-cost knee and hip implants to hospitals participating in bundled payments. 2. Medtronic spokesperson Brett Cromwell told the Business Jour- nal that the unit was unsuccessful in part because implant pricing became more competitive after fed- eral guidelines shifted. As a result, Medtronic's low-cost options were not as disruptive. 3. The Responsive Orthopedics knee replacement system had a lim- ited release, although Mr. Cromwell said its challenges breaking into the market were not due to quality of care. Medtronic never launched the Responsive Orthopedics hip replacement system. 4. In addition to providing implants, Medtronic's orthopedics business hoped to work with hospitals partici- pating in shared savings programs. 5. Even though Medtronic is leaving the orthopedics business, the Aqua- mantys business remains active and its spine business is still successful. In the third quarter of the 2019 fis- cal year, the company reported flat spine revenue at $655 million. n Ortho Rhode Island breaks ground on medical office building with surgery center — 3 insights By Eric Oliver P rovidence-based Ortho Rhode Island, Calspan and the Carpionato Group held a groundbreaking for Ortho Rhode Island's medical office building and surgery center in Warwick, R.I., GoLocal Prov reports. What you should know: 1. Developers broke ground on a 60,000-square-foot building. A second 40,000-square-foot building will be built afterward. 2. Ortho Rhode Island's development is on the same campus as a biotechnol- ogy research and development facility. 3. Calspan Development & Construction will oversee the project. Ortho Rhode Island President and CEO Michael Bradley, MD, praised War- wick officials, saying, "The support we have received from the city has made it very easy for us to make this significant investment in Warwick as we build this world-class, highly innovative and high-tech facility for the future." n CMS proposes adding total knee replacements to ASC covered list for 2020 By Rachel Popa C MS released its 2020 outpatient and ASC prospective payment system proposed rule, ushering in several changes for ASCs and hospital outpatient departments. Four things to know: 1. CMS proposed adding total knee arthroplasty to the ASC covered procedures list, along with knee mosaicplasty and three coronary interven- tion procedures. CMS is seeking comment on potential limitations that should be set on performing total knee arthroplasty or other pro- posed procedures in ASCs, as well as feedback on how the ASC covered procedures list could be redesigned to expand physicians' ability to choose the appropriate setting of care for their patients. Comments are due to CMS Sept. 27. 2. CMS also proposed removing total hip arthroplasty from the inpatient only list, making the procedure eligible for Medicare reimburse- ment in the hospital outpatient and inpatient setting. 3. CMS finalized its proposal to apply the hos- pital market basket update to the ASC payment system for five years and proposed to update ASC payment rates for 2020 by 2.7 percent for ASCs that meet quality reporting requirements. CMS said the change is intended to promote site neutrality and encourage the shi of outpatient procedures from HOPDs to ASCs. 4. CMS didn't remove any measures from the ASC quality reporting program for 2020 but did propose adopting a claims-based measure in 2024 for seven-day hospital visits aer general surgery procedures performed in ASCs. "We are grateful that this proposed rule contin- ues the sound policy of updating ASC Medicare payments for inflation on par with hospital outpatient departments," said Ambulatory Surgery Center Association CEO Bill Prentice in a statement. "In addition, proposing to add total knee arthroplasty to our procedures list so soon aer moving it from the inpatient-only list speaks well to the confidence that CMS has in the ability of physicians to use well-established patient selection criteria to move appropriate patients to the lower-cost ASC setting." n

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