Becker's ASC Review

10 ASC MANAGEMENT Physicians can win big with ASC investments By Patsy Newitt I nvestment in an ASC is a long-term strategy for physicians, particularly those not employed by a hospital, to thrive financially and gain more control over their day-to-day workflow. ASC investment and ownership also gives many physicians flexibility, providing a more manage- able workload and schedule than hospital or corporate employment. "e next-generation physicians have now seen the pros and cons of hospital employment," Joe Greene, MD, co-founder of Louisville (Ky.) Hip & Knee Institute, told Becker's. "Paramount to the success of those private practices is ASC ownership. ASC ownership has financial gains in itself but also enables a much more productive and happy work experience." Self-employed physicians make 18 percent more than employed physicians, according to Med- scape's "Physician Compensation Report 2022," and ASC ownership also offers ancillary revenue that hospital employment oen lacks. "Ancillary service revenue can reflect up to 50 to 60 percent of a private practicing physician's income which, unfortunately, short of gain- sharing opportunities or partial ASC owner- ship, is usually unavailable in a large healthcare system-employed practice situation," Jack Bert, MD, orthopedic surgeon at Woodbury (Minn.) Bone & Joint, told Becker's. Compared to other traditional passive invest- ments, surgery centers also offer a more per- sonalized experience. Physicians can grow their income based on their work. "By investing in their ASC operation, physicians can capture the facility portion of the reimburse- ment schedule, providing additional income for the work and investment they've put in," Collin Hart, CEO and managing director at ERE Healthcare Real Estate Advisors in Costa Mesa, Calif, told Becker's. "Try doing that with your Apple or Tesla stock." As private equity, health systems and payers are looking to ASCs as an investment opportunity, physicians are following suit. n ASC won't lose provider status because of suit against physician, California court rules By Patsy Newitt A California court ruled that a surgical clinic will not lose its status as a healthcare provider solely because a physician acted beyond the scope of his license, allegedly causing a patient's death, Hu- man Resources Director America reported May 6. According to the report, the patient went into cardiopulmonary arrest during a breast augmentation and remained intubated and unresponsive for about six weeks before dying. The patient's surviving family sued the clinic, the physician and the registered nurse who assisted during the 2019 surgery. They alleged the physician told the patient that a licensed anesthesiologist would admin- ister the anesthesia during the procedure, but the physician and nurse administered multiple anesthetics despite lacking a license to do so and failed to monitor the patient during the procedure. In 2021, they amended their complaint to include allegations that the physician misrepresented himself as a board-certified surgeon and that the clinic hired an unlicensed medical assistant who administered local anesthesia. A California appeals court ruled the clinic would not lose its healthcare provider status simply because the physician performed acts outside the scope of the relevant licenses. The ruling stated that the physician and surgery center were acting as healthcare providers when they administered anesthesia and offered other services to the patient as part of the surgery. The court ruled the family could amend its lawsuit to add punitive dam- ages to its claim. n ASC tax on the chopping block in Connecticut By Patsy Newitt T he Connecticut legislature's one-year, $24.2 billion state budget will eliminate ASC taxes by July 1, law firm Garfunkel Wild said May 6. The law, signed by Gov. Ned Lamont May 9, according to WTNH, will re- move both a gross receipt and net revenue tax. Under current law, ASCs are taxed 6 percent each quarter. The original tax was slated to transition from a gross receipts tax to a tax of 3 percent on net revenue on July 1, 2023. n

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