Becker's ASC Review

Becker's ASC Review March/April 2013 Issue

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ASC Turnarounds: Ideas to Improve Performance 10 10 Strategic Initiatives for ASCs to Prepare for the Future (continued from page 1) "We are taking a very hard look at our vendors, our representatives and our contracts for implants and surgical supplies," says Evalyn Cole, CEO and administrator of Spine Surgery Center of Eugene (Ore.). "Our surgeons are having serious discussions about cost versus quality of implants." we purchased all our instruments on E-bay for $5,000. If we had purchased them from the vendors, we would have spent $46,000. That's how we are keeping our costs down." Surgery centers can sell parts — such as an unused monitor from an old system — and put the profits toward future purchases; even equipment as big as C-arms are bought and sold on E-bay. There is an opportunity to carve out implant prices with some private payors, but Medicare's policy does not reimburse ASCs for implants in addition to the facility fee, which is already 65 to 70 percent less than hospital outpatient departments. "Our center is doing some hard negotiations with vendors about reduction on these items," says Ms. Cole. 2. Make prices more transparent. New payment models in healthcare are shifting more risk from insurance companies to providers and patients, and many people are choosing either high-deductible plans or cash-pay services. The Surgery Center of Oklahoma in Oklahoma City has capitalized on this trend by publishing prices online to attract medical tourism. Other providers are taking a new approach to equipment purchases. OA Centers for Orthopaedics in Portland, Maine, has jumped on the growing trend of medical E-bay, where facilities buy and sell instrumentation online. "We put our prices online in an attempt to draw patients directly to the facility using the transparent pricing as leverage in the marketplace," says Keith Smith, MD, co-founder and managing partner of the Surgery Center of Oklahoma. "We feel like we are more efficient and better quality than our hospital competitors. The best way to leverage that for our success is to show people the pricing." "We look to see if anyone is selling the instrumentation we want," says Linda Ruterbories, ANP, ASC Director at OA Centers for Orthopaedics. "They're new items and if there is someone selling it online, we can purchase it there instead of from the vendor. Last year, The surgery center has drawn patients from across the country and Canada for routine pro- Take your ASC to the top... cedures, such as knee arthroscopy.  Price transparency will become a bigger trend as patients comparative shop for providers and accountable care organizations seek the lowest cost, highest quality setting for care. 3. Assist surgeons build their own practices. Surgery centers that are additions to physician practices, such as OA Centers for Orthopaedics, already have an intrinsic connection between the practice and ASC health. However, when surgery centers aren't associated with one specific group, there is less effort to promote the physician's practice; this needs to change. "Looking into the future, we see our ASC as a practice builder for the surgeon to help remove some of the negative input third parties have had over them," says Dr. Smith, whose ASC drives patients by publishing prices online. "The patients find us on the internet when they are looking for medical tourism. This drives significant patient volume from places where single payor systems are failing. When they contact us we can send the patients to the appropriate surgeon affiliated with our ASC." When the physician's practice grows, so does their case volume at the surgery center. "We are driving cases to surgeons who wouldn't normally have contact with these patients," says Dr. With the right partner Meridian Surgical Partners specializes in acquisition, development, and management of multi-specialty and spine-driven ASCs. We have proven success partnering with physicians to help them reach their ASC goals. Physician Benefits Include • Excellent return on investment • Access to capital • Decreased risk • Reduced management burden • Strong focus on patient care and outcomes • Improved quality of life Contact us today to discuss your ASC goals. Acquisition • Development • Management www.meridiansurgicalpartners.com 615-301-8142 info@meridiansurg.com

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