Becker's Spine Review

41 ASC 108,700+ physicians move to employment in the last 3 years: 6 findings By Alan Condon M ore than 108,700 physicians have shifted to employ- ment from 2019 to 2021, with 58,200 physicians join- ing hospitals and 50,500 moving to other corporate entities, according to an April report from Avalere. Six findings: 1. Of the 108,700 physicians, 83,000 (76 percent) became em- ployees since the COVID-19 pandemic. 2. In 2021, the number of employed physicians increased from 69.3 percent to 73.9 percent, leaving just 25.9 percent of phy- sicians in private practice. 3. From 2019 through 2021, hospitals and health systems saw a 9 percent growth in physician practice acquisitions, accord- ing to the report. Corporate entities saw an 86 percent growth. 4. Hospitals and corporate entities, including private equity firms and insurers, now own 52.1 percent of physician prac- tices — hospitals own 26.4 percent and other corporate enti- ties own 27.2 percent. 5. Over the three-year period, the South saw the highest rate of acquisitions by corporate entities, a 94 percent increase. 6. At 63.5 percent, the Midwest continued to have the highest percentage of physicians employed by hospitals and health systems, growing 9 percent over the three-year period. n ASCs fight to recruit staff as jobless claims hit historic low By Marcus Robertson T he Labor Department said May 26 that jobless claims fell to 210,000, and continuing claims remain near the lowest level since 1969, the Wall Street Journal reported May 26. So why are so many ASCs hurting for staff? One major contributor is the fact that Walmart, Target, Ama- zon and other retailers are competing with ASCs for some of the same personnel, and they're willing to pay higher wages than in previous years. Walmart raised its minimum wage for all workers to $12 per hour in September 2021, with an average hourly wage of $16.40. CVS Health and Walgreens Boots Alliance have plans to boost their minimum wages to $15 per hour. Target and Amazon also have minimum wages of $15 per hour, while the national mini- mum wage is $7.25. That means office staff candidates, and sometimes nurses, can receive higher pay for entry-level jobs outside of health- care. In rural areas, the competition for workers can be es- pecially fierce. And then there's the competition from hospitals and health systems. "In my area, staffing and nursing wages are very competitive," Lianne McDowell, CEO and administrator of South Portland Surgical Center in Tualatin, Ore., told Becker's in January. "I've seen a big increase in wages for nurses. ere is a lack of staffing and nursing, there is a lot of competition with the hospital benefits and wages that are really skyrocketing, not just 2 percent or 3 percent, but more like 20 percent to 30 percent increases." On average, ASCs spend $2.2 million on employee salary and wages, or about 21.3 percent of net revenue, according to VMG Health's "Multi-Specialty ASC Benchmarking Study." Pay for ASC administrators is also going up, hitting $100,000 to $119,000 on average, according to OR Manager. "e biggest enemy [to ASCs] right now is the rising cost of everything," Amy Noble, practice administrator for the Cen- ter for Pain Control in Wyomissing, Pa., told Becker's. "From equipment to supplies to staffing, expenses continue to rise while reimbursements are stagnant." To combat the tight labor market and attractive wages from competitors, some ASCs have started offering $5,000 sign- on bonuses for administrators. Other centers hope their flexible scheduling and culture will draw administrative and nursing candidates more than the big money offered by other employers. Will it be enough? at answer will likely remain unclear in the near future, but one thing is certain: Something has to give. n Multispecialty ASC joining physician-owned orthopedic group By Marcus Robertson Physician-owned group practice CNOS is adding Dakota Dunes, S.D.-based Midlands Clinic, the Sioux City Journal re- ported June 12. Midlands Clinic is a multispecialty center offering services including dermatology, gastroenterology, bariatric and gen- eral surgery, the report said. All eight of its physicians are staying to join CNOS as well. The ASC will take the CNOS name Jan. 1, 2023. Financial terms were not disclosed. n

• Cover