Becker's Spine Review

39 ASC Why ASCs could beat inflation, per Warren Buffett By Laura Dyrda W arren Buffett, billionaire CEO of Berkshire Hathaway, made a projection at the company's an- nual shareholders meeting that bodes well for ASCs during times of high inflation. "e best thing you can do is to be exception- ally good at something," he said, according to a CNBC report, noting that a skill in demand stays in demand regardless of inflation. "Whatever abilities you have can't be taken away from you. ey can't actually be inflated away from you," Mr. Buffett went on to say. "e best investment by far is anything that develops yourself, and it's not taxed at all." Mr. Buffett's comments are good news for ASCs, especially focused-factor centers that have perfected a limited number of proce- dures. Single-specialty surgery centers have teams that perform the same procedures on a regular basis, making them better and more efficient than large hospital organizations where surgical teams rotate between special- ties daily. Even multispecialty centers are in a better po- sition because they're high quality, low cost care settings. And the need for healthcare, even "elective" surgeries, won't go away. ere were around 13.1 million surgical procedures performed in 2019 before the pandemic, ac- cording to a JAMA Network Open article. at number will likely increase with the aging population growing larger and as hospitals and health systems learn to maintain surgical volumes even during future surges. Surgery centers are poised to benefit, especial- ly if they provide a great patient experience and data to show insurers the benefit of incen- tivizing patients into the outpatient ASC. Em- ployers looking for a better deal on healthcare spending for employees are also interested in what local surgery centers have to offer. Mr. Buffett shared similar advice in 2009 as the Great Recession was ending, advising companies to invest in themselves. His second most important piece of advice is also some- thing for ASC owners to keep in mind: Invest in a business that is in high demand regard- less of the dollar strength, because people are willing to pay for what they like even during periods of inflation. n Owner, partner or employee: What's the most attractive to young physicians? By Patsy Newitt Y oung physicians are entering the job field with three employment options: owner, employee or partner, the American Medical Association laid out in a June 2 post. Here's what physicians need to know about ownership, partnership and employment: Owner A solo practice offers both the most autonomy and the most risk, according to the AMA. Private practice physi- cians have a lot of power — they run the books, control staffing decisions and manage schedules. The number of physicians in private practice is quickly de- clining, with more than 108,700 physicians shifting to em- ployment models from 2019 to 2021, according to a report from Avalere. This shift is concerning many physicians who feel private practice is the option where physicians can provide the most appropriate care. "Small private practices give physicians the ability to pro- vide the best care for their patients and to adapt to chang- es quickly and effectively," Joseph Anderson, MD, profes- sor of medicine at Dartmouth Geisel School of Medicine in Hanover, N.H., told Becker's. "Small private practices are the lifeblood of U.S. medicine, and their ability to survive is vital to healthcare in this country." However, choosing private practice is risky as the increas- ing cost of equipment, labor and supplies doesn't corre- late to increases in reimbursements. "Newer physicians will face increasing pressures on main- taining revenues to meet the equity partners' expectation for returns on their investment for buy out," David Johnson, MD, a gastroenterologist in Norfolk, Va., told Becker's. Partner There's also the option to partner up in a group practice, AMA wrote. This option offers a measure of autonomy without the same level of freedom seen in private practice. Larger groups allow for physicians to access economies of scale in an increasingly consolidated industry. The trend toward partnering in management service organizations and "megagroups" is increasingly popular in specialties such as gastroenterology and orthopedics. Employed Employed physicians often see a lower level of risk, part of the reason why the number of employed physicians rose during the COVID-19 pandemic. As of January 2022, nearly 74 percent of physicians reported being employ- ees, leaving 26 percent still in private practice, according to Avalere. While employed models traditionally offer less autonomy, the current labor market might be shifting that trend, ac- cording to the AMA. Because the market is so tight, em- ployers are often more open to offering autonomy. n

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