Becker's ASC Review

17 Becker's ASC 21st Annual Meeting – The Business and Operations of ASCs – Call (800) 417-2035 TOP REASONS TO BE A M E M B E R "Joining ASCA is critical not just for surviving but for succeeding." - Andrea Hyatt Towson, Maryland "Anybody that's starting an ASC needs to join ASCA." - Jesseye Arrambide Portland, Oregon "ASCA has been a definite benefit: you learn a lot, meet a lot of great people and the support system that you get is invaluable." - Gary Richberg Bellingham, Washington Join: www.ascassociation.org/Join2015 Renew: www.ascassociation.org/Renew2015 Unsure? Call 703.836.8808 AmSurg completed the $2.35 billion acquisi- tion of anesthesia provider Sheridan Health- care, a transaction plan originally announced in May. Foundation Healthcare completed a new $27.5 million term long and a $2.5 million revolving credit facility. The seven-year term loan is price at 30-day LIBOR plus 4.25 percent. The revolving credit facil- ity is priced at 30-day LIBOR plus 3.75 percent. Hospital Corporation of America reported sec- ond quarter revenue reached $9.2 billion, a 9 per- cent increase over the same period last year. Orthopaedic Associates of Maryland Surgery Cen- ter and Ellicott City Ambulatory Surgery Center merged and consolidated operations in Ellicott City, Md. The merger is a joint venture between Merritt Healthcare and 14 physician partners. Northstar Healthcare reported $15.1 million in es- timated revenue for the second quarter of this year, up from $9.2 million in the second quarter of 2013. Physicians Endoscopy and five physicians opened Island Digestive Health Center in West Islip, N.Y. Regent Surgical Health added Lindsay Rinnan as director of development and physician recruit- ment and Preeti Syal as a senior financial analyst. Moody's Investors Service expects Surgery Part- ners' debt-to-EBITDA ratio to rise eight-fold fol- lowing its $792 million acquisition of Symbion. Surgical Care Affiliates renewed its prime vendor agreement for distribution services with Medline Industries. The new five-year agreement is expected to be worth approximately $175 mil- lion over time. United Surgical Partners International ac- quired a 55 percent interest in Somerset Ambula- tory Surgery Center in Somerville, N.J. USPI also partnered with Mercy Medical Center to acquire a majority interest in Siouxland Surgery Center in Dakota Dunes, S.D. n ASC Company Updates: 10 Things to Know By Carrie Pallardy when bringing new cases into the surgery cen- ter. In some states, ASCs are able to keep pa- tients for 23-hour stays to monitor their recov- ery; others prohibit overnight stays. "Check with your state health department on any regulations and requirements for 23-hour stays," says Ms. Nantz. "If 23-hour/overnight stays are permissible, evaluate your specialty and flow needs and assess what length for clinical shifts — eight, 10 or 12 hour — make the most sense." Payer contracting If the center does decide to move forward with higher acuity cases, negotiating the appropriate payer contracts is a crucial next step. Determine whether the payer will cover the new procedure and whether you can achieve appropriate rates. This requires ASC owners and operators to analyze all costs associated with the procedure, including implants, equipment and staffing. "Reimbursement — or what payers and pa- tients pay — must exceed the total cost of the procedure, have additional profit, and must bring in enough volume to cover the cost of adding the procedure and earn enough to jus- tify the time and money invested in the pro- gram," says Ms. Nantz. When the appropriate contract is in place, pro- vide coders and billers with necessary educa- tion to bill for the new procedures. n

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