Becker's ASC Review

7 ASC MANAGEMENT "My organization is preparing for the potential proposed tariffs in 2025 by diversifying our vendor relationships for the procurement of our medical supplies and medications," Janet Carlson, MSN, RN, executive director of Louisville, Ky.-based Ambulatory Surgery Centers of Commonwealth Pain & Spine, told Becker's. "Supply chain pressures have been very labile since COVID, things still haven't settled down from that significant disruption." 2. With the nomination of Mehmet Oz, MD, as CMS administrator, many ASC leaders are keeping a sharp eye on Medicare Advantage. "I think ASCs should be prepared for an emphasis on Medicare Advantage by CMS and needing to overcome the current frustrations and lack of reimbursement they bring," Marjorie Reiter, administrator at North Brunswick-based Surgery Center of Central NJ, told Becker's. Dr. Oz proposed expanding Medicare Advantage plans to "all Americans who want them" during his bid for Senate, CNN reported in 2022. A spokesperson for Dr. Oz's campaign told CNN the plan was called "Medicare Advantage plus." Dr. Oz and former Kaiser Permanente CEO George Halvorson published an op-ed in Forbes in July 2020 proposing an expansion of Medicare Advantage plans to everyone not already enrolled in Medicaid. e proposal included rebranding the program as "Medical Advantage" and funding coverage for all citizens through a 20% payroll tax, with half paid by employers. 3. Some ASCs are also keeping an eye on a potential impact on research and education funding. "Any ASC with an academic relationship should be watchful for any impact on research and education funding," Ms. Reiter added. 4. Amid a push to cut costs, some ASC leaders are hoping that the new administration could support site neutral payment policies. Medicare rates for ASCs are, on average, 50% of what HOPDs receive for the same services, according to the Ambulatory Surgery Center Association. "I'm not sure I can offer any unique predictions, but I would expect that the pursuit of site-neutral payment policies might reduce or eliminate the price premium that hospital outpatient departments currently enjoy over ASCs," Mark Dietrich, a certified public accountant at Doshi & Associates in Bloomfield Hills, Mass., told Becker's. 5. ASC leaders are also hopeful for a potential expansion of the ASC- procedure list. In 2023, CMS added 11 procedures to the ASC-covered list in the ASC Payment System Final Rule. "As cost cutting is now in vogue, one might expect the range of procedures that are approved for ASCs to be expanded," Mr. Dietrich added. "One can be certain that the powerful trade associations will be vociferous in defense of their respective turfs." n Why this new ASC developer champions physician independence over hospital ownership By Patsy Newitt K er Leader Medical, a new ASC development company, is dedicated to preserving physician autonomy and promoting ASC independence. Woodrow Moore, one of the founders of Ker Medical, told Becker's about the organization's commitment to supporting independent ASCs. He emphasized their ability to provide high-quality care through strong physician leadership. "We believe that physician leadership results in better- quality healthcare," Mr. Moore said. "Independent ASCs prioritize physician governance and leadership, which strengthens their ability to remain independent. This independence is closely tied to providing comprehensive patient care through ancillary services." This mission has become increasingly important in a healthcare landscape dominated by consolidation. While the ASC sector remains fragmented, the number of ASCs partnered with national operators has grown significantly — from approximately 1,339 centers in 2011 to nearly 2,000 today. This shift reflects a changing ownership dynamic in the outpatient care industry. Ker Medical's commitment to independence is also evident in its decision to avoid partnerships with major hospital systems. Recently, John Webb, another founder of Ker Medical and president of MMC Capital Markets, declined a prominent hospital group's offer to join their organization. According to Mr. Webb, the group said they "couldn't compete" with Ker Medical's financing model. "I turned them down because my goal is to make a difference for independent ASCs," Mr. Webb explained. "It's not about the money. It's about leveling the playing field." Ker Medical envisions its network of independent ASCs as more akin to a "farming co-op" than a corporate, Wall Street-backed entity. This model prioritizes local physician leadership and autonomy, fostering an environment where they can thrive. By offering lower costs and creative financing solutions, Ker Medical provides independent ASCs with the tools to succeed in a competitive market. "Independent ASCs face constant pressure from hospitals to sell out or remain financially constrained," Mr. Webb said. "Our goal is to empower them, helping them resist consolidation and flourish." n

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