Becker's ASC Review

Becker's ASC Review March/April 2016

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8 ASC Management A dding a new service line can increase ASC revenue. How- ever, ASC owners and opera- tors have several considerations be- fore implementing a new service line. "When adding a service line, devel- op a business case confirming your assumptions regarding volume, rate and costs, thus ensuring your ex- pected outcome can be achieved and is compelling enough to gain buy in from your partnership and partici- pating physicians," says Winborne Macphail, senior vice president of sales and market development for Surgical Care Affiliates. Here are five considerations for ASCs when adding a new service line. 1. Conduct an economic analysis. e most successful ASC leaders talk with payers to ensure they will cover the service line. "ASCs need to do an economic analysis of what reimbursement will be," says Joe Zasa, managing partner of ASD Management. "ey need to discuss with third party payers carve-outs for those procedures to obtain higher reimbursement." 2. Talk to your physicians. When adding a service line it's essential to confirm the assumptions you are making regarding expected case volume and costs are sound. "e foundation has to start with the commitment from the physicians to participate in supporting the new service," says Ms. Macphail. "If you don't have a firm commitment from your physicians, you may want to reconsider any investments until you do. You should also pros- pect the total market and evaluate other available physicians to optimize the service line and the investment opportunity." Talk to the physicians about the total number of cases they can bring to the new service line, and then calculate the actual number of cases each physi- cian will bring; physicians oen over-estimate the actual cases they'll bring to the center. "When an ASC knows the reimbursement rate, its cost to perform the case and has commitment so that it can estimate the number of cases, and can assess if they want to add the line," Mr. Zasa says. 3. Understand the outpatient landscape by specialty. Look at the outpatient landscape when choosing a service line to determine if it makes sense for the long term. If a center is considering adding pain management, for example, consider if pain is look at whether the outpatient setting is going back into the office setting. Consider adding a line that compliments an existing specialty such as total joints for an orthopedics-focused center. Service lines that go hand-in-hand may serve as a practical and oen highly profitable expansion opportunity. 4. Develop a business plan. Adding a service line entails various ex- penses/costs to evaluate that will ensure a good investment. Evaluate all capital investments as well as equipment costs. A center may also want to consider making facility improvements, such as updating the waiting room with coffee and comfortable seating to put patients at ease. 5. Have a formal implementation plan. Train and/or hire clinical staff to ensure competency in the new procedures, and develop protocols for a smooth implementation process. The addition of a new service line should not disrupt patient care. Ms. Macphail recommends leveraging vendor relationships and negotiate leasing options or other arrangements to pace your investment costs for capital equipment. "If you start in advance and have a plan, you will accelerate the start and ultimate success of a new service line," says Ms. Macphail. "Make sure everyone is on board and knows why the service line is beneficial for the growth of the center." n 5 Considerations for ASCs When Adding a New Service Line By Mary Rechtoris Joe Zasa Key Thoughts on Running the Most Efficient ASC Team Meeting By Allison Sobczak A ny type of gathering, whether a medical staff or a business group, can benefit from team meetings. Thomas Lally, CEO of Charlotte (N.C.) Surgery Cen- ter, an affiliate of Surgical Care Affiliates, weighs in on the importance of holding team meetings and how to properly run one. Q: What do you see as the advantages of team physi- cian/staff meetings? Thomas Lally: One of the consistent feedback items I get from teammate satisfaction/engagement surveys through- out the many organizations I have been associated with centers around improvement in the quantity and quality of communication. Given the multitude of issues demanding our time and attention, and given the variation of the ability of individual leaders to communicate, it is safe to say that effective communication requires constant effort. It doesn't just happen. At Surgical Care Affiliates, we call our teammate meetings "teammate town halls." We find that town halls are one of the most powerful venues for teammate communication, and ultimately, teammate engagement. Q: What would an ideal meeting look to you in an ASC setting? Do you have any suggestions for how to run a team meeting, or how to get the best out of the meeting? TL: I think it is extremely important to have a regular cadence of consistent interactive messaging with your teammates. Whether it's an entire team town hall, or a sub-department meeting (quality, growth, OR, etc.) there are key required components: • Advanced notice/invitation to attendees • Starting with a stated purpose • Having a formal agenda • Creating a balance between presenting information and active involvement of attendees • Taking time for recognition of milestones and celebra- tion of success

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