Becker's ASC Review

19 Thought Leadership Former CVS exec: Retailers like Walmart won't compete with ASCs in the near future By Angie Stewart R etailers are leveraging their branding and scale to provide qual- ity, cost-effective and convenient healthcare services that foster growth as foot traffic declines, according to Eric Morgera, former senior manager of corporate strategy and digital innovation at CVS Health, and current co-founder and COO at Bouu, a digital retail outlet company. Examples of retailers' investments in the $3.5 trillion healthcare indus- try are Amazon's acquisition and integration of PillPack, Walgreens' partnership with MDLive to offer telemedicine services, and Walmart's pilot "Walmart Health" center in Dallas, Ga. However, as companies across the retail spectrum enter the healthcare space, ASCs "will face little to no core competition" from them in the near term, Mr. Morgera told Becker's ASC Review. "Retailers are drawing a line on the type of healthcare services they are investing in — generally stopping at primary care and non-surgical outpatient services," he said. "e reality is, while consumers appreciate saving time or money by receiving healthcare services offered by retail- ers, consumer confidence in retail brands is not significant enough to warrant offering services that go beyond simple immunizations, check- ups or basic care." In addition to changing consumer perceptions, retailers would have to make significant investments to retain the medical labor, surgi- cal equipment and licensure needed to provide surgical services on a profitable scale, Mr. Morgera said — and at this point in time, there wouldn't be enough return on investment for retailers to do so. Rather than competing with ASCs, retailers in the healthcare space will "evolve and deepen their relationships" with these centers, Mr. Morgera predicted. CVS Pharmacy did so by launching on-site vending ma- chines near hospitals and outpatient centers, and Amazon introduced a professional medical equipment assortment on its Amazon Business marketplace. Retailers are primarily focused on evolving their merchandise to make the care transition as smooth as possible for patients, with offerings such as advanced over-the-counter post-care products. As retailers continue to empower patients in their own care, Mr. Morgera foresees opportunities for heightened collaboration. "I wouldn't be surprised to see more compressive partnerships intro- duced between retailers and national or regional ASCs and other health- care providers over the coming one to two years," Mr. Morgera said. n These specialties are still great for ASCs By Rachel Popa T here are a number of specialties ASC leaders are op- timistic about moving forward, according to panelists who attended the Becker's ASC 26th annual meeting in Chicago. The panelists were: • Gregory P. DeConciliis, PA-C, administrator of Boston Out- Patient Surgical Suites • Rebecca Bruce, director of the UPMC Leader Surgery Center in York, Pa. • Robert Thornberry, MD, of the Tallahassee (Fla.) Orthope- dic Clinic • Stephen Blake, JD, CEO of Central Park ENT & Surgery Center in Arlington, Texas Three insights: 1. Orthopedics. Many ASCs are pursuing total joint programs and are finding adding the procedures to be a good investment, especially when partnering with private insurers. 2. Spine. Spine procedures are high-reimbursing cases, with one panelist saying that one of his spine surgeons could generate $100,000 using one operating room. 3. Ear, nose and throat. ENT procedures are high volume, and have a lower cost and minimal supplies. Community exposure also makes ENT lucrative, as families bring their children to the center. n Retailers are drawing a line on the type of healthcare services they are investing in

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