How Do ASC-HOPD Conversions Affect Healthcare Costs? OIG to Examine in 2013

The Office of the Inspector General plans to examine in 2013 the extent to which hospitals acquire ASCs and convert them to hospital outpatient departments, according to an ASCA report.

The OIG will also examine the effects of these acquisitions on Medicare payments and beneficiary cost sharing. On average, Medicare pays surgery centers 58 percent of the rate paid to HOPDs for performing the same services.

The OIG will also review whether Medicare's methodology for setting ASC payment rates under the revised payment system is appropriate. The OIG will look at the alleged disparity between ASC and HOPD payment rates, as well as data on quality of care and safety in ASCs and HOPDs.

According to the OIG's Fiscal Year 2013 Work Plan, the OIG will be assessing pre-operative care and care during surgeries and procedures in both settings.

Related Articles on Transactions & Valuation:
Iowa's Henry County Health Center Breaks Ground on New Surgery Center
Corona Summit Surgical Center Opens in California
First Surgical Partners Intends to Go Private

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