Becker's ASC Review

17 THOUGHT LEADERSHIP The million-dollar question facing ASCs By Patsy Newitt A SC leaders and hospitals alike are facing major obstacles to profitability as operational costs soar and Medicare and private payer reimbursement rates sink. Independent ASCs, which make up most of the market, face particular challenges as they struggle to access the economies of scale necessary to ink lucrative payer and supply contracts. From staffing strategies to payer conversations, 14 ASC leaders joined Becker's to discuss their methods to address this imbalance. Question: How can ASC leaders balance rising operational costs with stagnant or decreasing reimbursement rates to ensure financial stability? Editor's note: ese responses were edited lightly for clarity and length. Shakeel Ahmed, MD. Gastroenterologist and CEO of Atlas Surgical Group (St. Louis): By taking strategic steps, ASC leaders can offset the increased operational costs without getting hit by stagnant or decreasing reimbursement rates. For one, they can decrease operational costs by improving workflow efficiency and waste reduction, as well as technology adoption that is price-sensitive. A second way to lower costs is through supplier rate negotiations. irdly, offering a multitude of lower- cost yet higher-yield procedures, like GI services or procedures, can help increase the profitability of a practice by increasing revenues and diversifying revenue streams. Advocating for policy changes and negotiating more favorable reimbursement rates with payers can similarly add to your financial wherewithal. ASC leaders should focus on strategies that help to reduce financial stresses and keep the operation viable. Greg DeConciilis. Administrator of Boston Out-Patient Surgical Suites: Margins continue to run thin as we are dealing with rising operational costs across the board, coupled with stagnant reimbursement rates. It is important, now more than ever, to ensure you are increasing efficiency and reducing waste. ese two principles have been the hallmarks of ASC success, and are paramount at this juncture. In times like this we start with increasing effective communication. Surgeon communication on costs should increase, and exercises such as case costing and benchmarking are key. is can also occur with staff, encouraging them to not open supplies and implants until they are needed, and potentially rewarding staff for cost savings with a bonus pool. Your materials manager personnel should encourage competition amongst vendors and trial new products that achieve cost savings. In regards to decreasing reimbursement, I would argue that hiring a consultant to analyze your contracts and attempt to renegotiate your contracts, if able, can be an effective cost-conscious exercise. It may be costly to perform this analysis and negotiations, but on the back end, it can be exponentially beneficial. Jim Freund. Managing Partner for Physician Transaction Advisors. While a huge challenge for any ASC, focusing on operational and staffing efficiencies are important in balancing out rising costs. Considering options that enable organizations to streamline processes, which may include utilizing new technologies and available service offerings that may prove to be more affordable over time, can reduce costs. Allison Griffin. Administrator of Urological Associates of Savannah (Ga.): Payers must recognize both the high-quality, low-cost advantages that ASCs offer and the growing patient demand for many of the other conveniences that ASC settings provide: 1. Ease and flexibility of scheduling 2. Ease of entry and exit to facilities (no complex parking or long walks to large hospital structures that are difficult to navigate) 3. Patients are more likely to undergo procedures in ASCs, which can lead to earlier detection and intervention, resulting in significant cost savings for payers 4. Patients appreciate the personalized care found in smaller settings with staff they recognize and trust 5. Lower ASC staff turnover results in improved provider productivity as they work with the same team day in and day out. As specialty provider shortages across the county escalate, utilizing providers efficiently will become essential so that wait times are reasonable. Tracie Hark. Administrator of Northeast Missouri Ambulatory Surgery Center (Hannibal): ASC leaders need to be looking at every cost in the facility all of the time. We know the cost of our cases and have to have tough conversations with surgeons when they want to use newer, more expensive supplies and implants. If the surgeon feels the newest supply or implant is necessary for the patient, they may have to take the case elsewhere due to our low reimbursement. We find most of the time the surgeon is open to using the same supplies and implants he/ she has been using and that just because there is something newer on the market that Image Credit: Adobe Stock

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