Becker's ASC Review

12 ASC MANAGEMENT $74M medical office building with ASC sold in Beverly Hills By Patsy Newitt L a Salle Investment Management acquired a Bev- erly Hills, Calif., medical office building with ASC for $74.4 million. The five-story, 49,721-square-foot building includes a surgery center, full-service pharmacy, valet parking and a rooftop deck, according to a March 25 release. The building is anchored by Keck Medicine of USC and is near several hospitals, including Cedars-Sinai Hospital, UCLA Medical Center, St. John's Hospital and Olympia Medical Center. La Salle Investment purchased the building from UBS Realty Investors. Beverly Hills medical office properties have had single-digit vacancy numbers since 2002, the release said. n Physician pays $188K to scammers posing as Justice Department By Laura Dyrda S cammers are increasing efforts to trick people out of their money, and some are targeting physicians. News 5 Cleveland, an ABC affiliate, reported an Ohio physi- cian paid scammers thousands of dollars after receiving a phone call from someone posing as a representative from the Justice Department. The scammer told the physician his prescription practices were under investigation and sent the physician faxes about his bank accounts being compromised by drug traffickers. The physician paid the scammers $188,000, according to the report. Vicki Anderson, special agent of the Cleveland FBI, said the federal government does not call individuals demanding fines and warned others against becoming victims of similar fraud schemes. n 10 factors to make or break an ASC in the next 2 years By Laura Dyrda T he pandemic affected ASC case volume and operations in several ways in the last year, with some centers adapting while others are struggling to stay afloat. Here are the factors that could make or break an ASC within the next two years, according to seven administrators and physicians. 1. Case volume. ASCs base desired payer rates and budget projec- tions on expected volume, which drives the surgery center's revenue. If case volume falls short of expectations, the center will miss finan- cial goals. LuAnne Jordan, administrator of Savannah (Ga.) F&A ASC, said her center will depend on boosting case volume to succeed in the next 24 months. "We are a single-specialty surgery center and just limited as to what procedures we can do," she said. "We need to recruit more physicians so we can increase our volume." Shawn Menke, administrator of Genstler Eye Center in Topeka, Kan., said a consistent demand for cataract surgery will be an important factor to ongoing operations at his ophthalmology-driven ASC. "Ophthalmology was one of, if not the hardest-hit specialties" af- fected by the pandemic, he said. "e demand for cataract surgery seems to be coming back, but it has been a slow climb." 2. Physician engagement. ASCs need physicians excited and motivated to bring cases to the surgery center, whether they are owners or not. "If the surgeon is not made to feel welcome nor respected," that surgeon "will take their cases to the nearest outpatient surgery center," said Rob- ert Lerma, administrator of Blue Springs Surgery Center in Orange City, Fla. "e center must accommodate the surgeon within its means." 3. Direct contracting with employers. Employers are increasingly in- terested in direct contracting with surgery centers through regional and national contracts, said Mike Grant, administrator of Surgery Center of Amarillo (Texas). e additional contracts will boost ASC volume. "As the cost of healthcare benefits for employees continues to rise, we are seeing continued requests for contracts that allow employers to provide high quality care services to their employees at a significant cost savings to the employer," he said. 4. COVID-19-related limitations and expenses. e policies and guidelines for operating surgical facilities during the pandemic rap- idly changed at the national and state level in the last year. It has been a challenge for ASCs to adapt to a limited case volume and increased personal protective equipment expenses. "Elective surgical work under our new normal has several require- ments, such as coronavirus testing methodology for patients, screen- ings for staff, wearing PPE and comprehensive cleaning protocols," said Seth Silver, MD, medical director of Ambulatory Care Center in Vineland, N.J. "e economic impact of the coronavirus has been significant on our facility. We need to return to our previous casel- oad. What will break our facility is additional expenses in the face of decreased surgical numbers." 5. Payer behavior. Commercial payers' policies affect the survival of independent ASCs across the U.S., including North Pines Surgery Center in Conroe, Texas. Administrator Tammy Stanfield, BSN, RN, CCRN, said an increase in the number of pending authorizations from insurance companies or more frequent denials could break the center. Success also depends on how fast the center receives reimbursement. "Turnaround for payment from insurance companies, including Tricare, is slower than ever right now," said Ms. Jordan of Savannah F&A ASC. "e insurance companies find so many ways either to delay payment or not pay at all."

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