Becker's ASC Review

39 Thought Leadership How a Missouri ASC is solving supply chain challenges: Q&A with administrator Andrew Lovewell By Patsy Newitt C olumbia, Mo.-based Surgical Center at Columbia Orthopaedic Group Administrator Andrew Lovewell re- cently spoke to Becker's ASC Review about tackling supply chain challenges. Question: What are your top supply chain challenges today? Andrew Lovewell: One of the biggest chal- lenges that we are facing today is the delivery of back-ordered products and the overall health of the supply chain. For example: gloves, gowns or masks that were ordered to protect staff and patients are being pro- duced and shipped out, but it seems other general supplies may have been pushed to the backburner. We have found the best way to combat all of this is clear, open, transpar- ent communication with all stakeholders on what is needed, what is here, what is back- ordered, etc. Many of our staff and surgeons have been extremely open to change during these trying times, and it helps that we are all unified with a common goal to protect our patients. Q: Is it easier or harder to work with sup- ply and implant vendors than before the pandemic? Mr. Lovewell: I wouldn't say that it is harder or easier to work with supply and implant vendors today, just different. As an orthopedic-focused ASC, we have contin- ued to operate at a very limited capacity on urgent and semi-emergent surgeries during the pandemic. I think that was one of our largest strengths. Since we did not fully shut down, we didn't have to go back through the process of starting back up. Many of our vendors did have raw material issues, just due to the nature of what we are experi- encing. However, it was uplifting to see competitive companies working together to streamline delivery of supplies and implants so we can take care of each individual patient. The pandemic has most certainly taught us that creativity and innovation are still a must in the healthcare world. n Will the pandemic spark more ASC sales? 4 observations By Laura Dyrda I ndependent surgery centers experienced revenue loss last year when elective sur- geries were limited due to COVID-19, but many ramped cases back up and aim to stay independent if possible. "I believe in 2021 that independent surgery centers will unite in a more organized way to use their resources to build relationships with hospitals and management compa- nies more as peers than as a competitor," James McClung, BSN, RN, a board member of the Texas Ambulatory Surgery Center Society, told Becker's. "e independent ASC industry has been the leading industry for a large portion of the innovation happening in controlling medical care cost and providing more for less." ASC chains also anticipate growing market share in the coming months by adding new centers, working with physicians on de novo ASCs and partnering with health systems to enter new markets. Four observations: 1. Seventy-two percent of ASCs remain independent despite a high level of mergers and acquisitions last year, according to VMG Health. In 2020, Dallas-based United Surgical Partners International added 3,700 physicians, and Deerfield, Ill.-based Surgical Care Affiliates added 1,000 physicians. Both grew primarily through acquiring other surgery center companies and plan to increase acquisition efforts in the coming year. United Surgical Partners International aims to purchase 25 to 40 new ASCs, while Op- tum, Surgical Care Affiliates' parent company, aims to add 10,000 physicians in 2021. 2. ASC companies are extending partnerships with health systems on surgery center networks: • Regent Surgical Health, based in Chicago and Nashville, Tenn., became the exclu- sive national ASC development partner for St. Louis-based Ascension March 4. • Surgical Care Affiliates partnered with Minneapolis-based Allina Health in 2019, and the partnership announced plans to build a new ASC in Brooklyn Park, Minn., earlier this year. • United Surgical Partners International extended its existing relationship with San Francisco-based Dignity Health for a joint-venture ASC in Citrus Heights, Calif. • ValueHealth, a Leawood, Kan.-based digital healthcare company, entered into partnerships with Cleveland-based University Hospitals and Wilmington, Del.- based ChristianaCare on orthopedic ASCs during the first quarter. 3. Surgery centers are joining larger organizations, including private equity. US Digestive Health in Exton, Pa., partnered with four gastroenterology practices in Pennsylvania to begin the year. ere were also four private equity transactions in orthopedics during the first quarter, including U.S. Orthopedic Partners acquiring two Mississippi-based practices. "ere is going to be more money flowing into orthopedics in general," said Michael Ast, MD, an orthopedic surgeon at Hospital for Special Surgery in New York City. "We've watched private equity starting to make moves into orthopedics. I don't think that's go- ing to slow down. ey're not only going to invest in the practice side, but they're going to go into surgery centers as another opportunity to help practices open new centers, expand existing centers and expand the potential service lines at existing centers." 4. Physicians are selling ASC real estate in multimillion-dollar transactions. In March, El Paso, Texas-based Sun City Orthopaedics and West El Paso Surgical Center, a joint venture between physicians and HCA Healthcare in Nashville, Tenn., sold its medical real estate portfolio for $9.5 million. Montecito Medical Real Estate purchased two medical office buildings and an ASC from Tyler, Texas-based Precision Spine Care in March as well. n

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