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15 ASC MANAGEMENT 'You Can do Good and do Well' — DuPage CEO Michael Kasper on Transforming Healthcare By Megan Wood M any hospitals are reacting to the current state of the healthcare indus- try by scurrying to deliver as many services and enter as many markets as possible. But when hospitals began focusing on monopolizing the industry instead of their core business, they stopped being good hospitals, said Michael Kasper, CEO of Chicago-based DuPage Medical Group. "In healthcare, it's better to know who you're not, then trying to be everything else," said Mr. Kasper. He sees the industry at an inflection point, when billion became the new million in healthcare, and thinks one of two things will occur. Either hospitals will retrench and focus on their central business or a new player will enter the hospital space. "And [that new stakeholder] may not be a player that any of us are going to like, by the way," said Mr. Kasper during a keynote presentation at Becker's 15th An- nual Spine, Orthopedic and Pain Management-Driven ASC Conference + e Future of Spine, June 24, in Chicago. "So, we want to create more alternatives for physicians and DuPage Medical Group is one of those alternatives." DuPage is attempting to transform medicine by providing a unified voice to boost the patient experience. e lowest cost option and lowest cost accountable care organization in Chicago, DuPage spends $8,847 per beneficiary per year. e company works with more than 600 physicians who provide more than 50 service lines. "We want to create another option for doctors; that's our strategic mission," Mr. Kasper said. "And the main reason we want to create that option is because it's good for patients." DuPage believes in a collaborative model, where various stakeholders come together to work as partners. "is is not easy, but it becomes a lot harder when you take all the disparate pieces that are difficult enough [to manage] on their own and try to smash them together under one roof," explained Mr. Kasper. DuPage prioritizes its strategies in five main areas, with the ultimate goal of link- ing all outpatient medicine services in a "virtuous model." 1. Physician growth. Every action DuPage takes begins with its physicians. e group boosts it physician base to add additional specialties, targeting more than 300 providers in 24 to 36 months. 2. Medicare. Currently, an insurance company pays a hospital across the street from DuPage $2,500 and pays DuPage $500 for the same MRI service. Mr. Kasper explained the tide is shiing, where Medicare and other payers will begin to only pay $500 for that service. 3. Risk. "We can spend a million dollars to get a dollar better than any other [industry]," said Mr. Kasper. "It's a horrible way to manage a business." In contrast, DuPage put little investment into an organization it built from the group up called Boncura, a physician-driven management services organization intended to maximize productivity and efficiency. 4. Ancillary growth. Mr. Kasper said the health system's number one opportunity is providing site of service. Ancillary opportunities include ASCs, Outpatient Surgery Outstrips Inpatient Surgery by Around 8M Surgeries Annually over 10-year Period By Eric Oliver F rom 1990 to 2014 outpatient surgery rates have grown 15.4 percent, drasti- cally reducing the percentage of total inpatient surgeries. In 1994 there were 9.83 million inpatient sur- geries and 13.15 million outpatient surgeries performed. In 2014, while inpatient surgeries decreased to 9.01 million, outpatient surger- ies rocketed to 17.38 million. The American Hospital Association TrendWatch compiles the percentage of inpatient versus outpatient surgeries on a yearly basis. Here is a decade of data comparing inpatient surgeries to outpatient surgeries: 2004: Inpatient — 10.050 million | Outpatient — 17.351 million 2005: Inpatient — 10.097 million | Outpatient — 17.445 million 2006: Inpatient — 10.095 million | Outpatient — 17.235 million 2007: Inpatient — 10.189 million | Outpatient — 17.146 million 2008: Inpatient — 10.105 million | Outpatient — 17.354 million 2009: Inpatient — 10.100 million | Outpatient — 17.357 million 2010: Inpatient — 9.954 million | Outpatient — 17.357 million 2011: Inpatient — 9.638 million | Outpatient — 17.269 million 2012: Inpatient — 9.513 million | Outpatient — 17.297 million 2013: Inpatient — 9.147 million | Outpatient — 17.418 million 2014: Inpatient — 9.015 million | Outpatient — 17.386 million Note: This data was compiled by the Ameri- can Hospital Association's Annual Survey data, 2014. It's designed to give context to the industry as a whole. n

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