New Jersey ASCs Look to Partner, Be Acquired as Out-of-Network Reimbursement Disappears
According to Larry Trenk, market president of USPI and president of the New Jersey Association of Ambulatory Surgery Centers, surgery centers have historically profited from an out-of-network strategy, meaning they don’t negotiate commercial contracts with insurers and instead bill their fees directly to the payor. But pressure from payors – including threats to the professional contracts of physicians who bring their cases to surgery centers, and incentives for patients to choose in-network facilities – has made contract negotiation more attractive.
USPI has worked with Meridian Health in Monmouth and Ocean counties in New Jersey, building or acquiring six ASCs over 13 years.
Hospitals are also looking to acquire ambulatory surgery centers, as they seek market share in the midst of healthcare reform implementation. The advent of ACOs means that hospitals will be seeking high-quality, low-cost providers to keep expenses down, and ASCs could present an opportunity.
Joseph A. Trufino, president and CEO of the Atlantic Health System, told NJBiz that hospitals are acquiring surgery centers to coordinate care between providers and establish a dedicated base of patients.
Related Articles on Coding, Billing and Collections:
What EFTs Mean to Healthcare Providers
Four Office Workers Sentenced to Prison for Fraud Scheme at California's Unity Surgical Outpatient Center
Establish Normal Coding Routine to Avoid ICD-10 Productivity Drop
© Copyright ASC COMMUNICATIONS 2015. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.