Becker's ASC Review

Becker's ASC Review March/April 2014 Issue

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52 12th Annual Spine, Orthopedic and Pain Management-Driven ASC Conference + The Future of Spine - call (800) 417-2035 Physician-Centric Model Proven Track Record of Enhancing Profitability & Driving Operational Efficiencies Expertise in Management Development Acquisitions Ambulatory Surgical Facilities Leading national ASC company with 47 ASCs spanning 18 states VISIT SurgeryPartners.com OR CONTACT US AT BusinessDevelopment@surgerypartners.com Kh: Currently, there isn't a Medicare fee sched- ule for spine surgery in an ASC setting; therefore, each market is dependent on the ASC's ability to negotiate a suitable case rate or fee schedule with commercial payers. Some payers, certainly not all, are beginning to recognize that spine surgery can be performed safely in an ASC setting at a lower cost than hospitals. We anticipate downward pres- sure on spine reimbursement rates, just as we've seen historically with other specialties. ASCs will continue to provide high quality care in the lowest cost surgical setting. Q: What key trends in healthcare present the best opportunities for success with outpatient spine centers? Kh: The ASC setting produces the lowest cost surgical option. According to a recent study by ASCA, ASCs currently save the Medicare system $2.6 billion a year and if just half of the eligible procedures were moved to the ASC setting from HOPDs it would save the system another $2.5 bil- lion. The savings for the Medicare program gen- erated by ASCs could exceed $57 billion over the next decade. Over the last 10 years, ASC reimbursement rates have declined in comparison to HOPD reimburse- ment rates and are now on average 58 percent of what an HOPD receives for a similar procedure. Providing high quality spine surgery for the lowest cost will matter as consumers take on a more active responsibility for their healthcare expenses. Transparency is needed to fully expose the cost differential between the ASC setting and hospitals. As that evolves and patients are aware of their op- tions, many will select the ASC versus the hospital due to savings, high quality care, excellent patient satisfaction and decreased risk of infection. Growth opportunities will include participation with self-insured employers, acutely aware of their cost of employee healthcare, seeking high quality, lower cost surgical alternatives. Groups managing populations will also be viable growth opportuni- ties as they seek lower surgical cost alternatives. As more and more groups emerge that manage populations such as ACOs, IPAs, large physician networks, etc., it will continue to be extremely im- portant for ASCs to be recognized as a high qual- ity lower cost provider of spine surgery. n 40 Statistics on Surgery Center Staff Salary & Hours Per Case By Carrie Pallardy H ere are 40 statistics on surgery center staff wages, salary and hours per case by geographical location, according to VMG Health's ASC Intellimarker Survey 2011. Staff wages and salary West • Nurse staff: $36.61 • Tech staff: $23.04 • Administrative staff: $23.98 • Administrator (salary): $114,109 Southwest • Nurse staff: $31.58 • Tech staff: $20.64 • Administrative staff: $21.36 • Administrator (salary): $100,779 Midwest • Nurse staff: $29.79 • Tech staff: $19.43 • Administrative staff: $22.38 • Administrator (salary): $104,372 Southeast • Nurse staff: $30.28 • Tech staff: $18.95 • Administrative staff: $22.78 • Administrator (salary): $110,311 Northeast • Nurse staff: $32.58 • Tech staff: $20.26 • Administrative staff: $24.49 • Administrator (salary): $109,268 Staff hours per case West • Nurse: 6.1 • Tech: 2.9 • Administrative: 4.4 • Administrator: 0.5 Southwest • Nurse: 6 • Tech: 2.4 • Administrative: 3.8 • Administrator: 0.5 Midwest • Nurse: 6.8 • Tech: 2.5 • Administrative: 3.9 • Administrator: 0.4 Southeast • Nurse: 5.4 • Tech: 2.1 • Administrative: 3.7 • Administrator: 0.4 Northeast • Nurse: 5.6 • Tech: 2.3 • Administrative: 4.1 • Administrator: 0.5 n TO SuBSCRiBE TO the FREE Becker's ASC E-weekly, go to www.BeckersASC.com or e-mail Scott Becker at sbecker@beckershealthcare.com

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