Washington update: ASC issue outlook neutral to positive

With midterm elections coming up, things probably won’t change, according to William Prentice and Nap Gary, CEO and past president at the Ambulatory Surgery Centers Association, respectively, who spoke in a panel at the Becker’s ASC 21st Annual Meeting - The Business and Operations of ASCs.

Lately, there has been a stagnation in the overall growth of Medicare-certified ASCs, in part driven by the lag in ASC reimbursement rate increases compared to hospital outpatient department reimbursement rates. The outcome of the 2014 midterms, whether a Republican or Democratic victory, won’t have much influence on what happens in healthcare legislation where it concerns ASCs, according to Mr. Prentice and Mr. Gary.

While things may not change soon, Mr. Prentice says, ASCA has begun to gain some traction on its issues in Washington D.C. “We’re seeing some awareness and some alarm at the impact the change in rates is having on ASCs and on our existence as a lower-cost alternative, but that lower cost won’t be permanent if reimbursements remain the way they are,” he said.

Among other issues Mr. Prentice and Mr. Gary noted might affect the political future of ASCs:

• Reinforcement of negative thoughts among physicians creating a perception of losing battles before they have begun

• Industry movement toward ACOs potentially pushing ASCs out to the margins of healthcare

• Regulation of physician ownership, though this issue is far less pressing than in the past

• Out-of-network misconceptions among payers and providers.


“It’s vital to our industry to have a fresh supply of supportive surgeons. But, surgeon numbers are skewing older than they have been, so our [ASC] numbers are shrinking. External forces are influencing us dramatically,” said Mr. Gary of the importance of creating movement in reimbursement rates, getting out in front of ASC issues on the national level and advocating for ASCs in general.

The ASC industry, however, is in good shape to provide evidence of its quality and benefits for patients, according to Mr. Prentice. “We went to Washington and essentially asked to be regulated,” he said. “Where are we in terms of the quality of care that’s being provided? Well, I’m very proud of the quality of care being provided in the ASC space.”

More articles on turnarounds:
The Amazon.com for ASCs
Creating a culture of value, appreciation among ASC employees
A lesson for healthcare leaders from Cirque du Soleil

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