From: Becker Scott <becker@beckersasc.com>
Subject: Insights on Orthopedics and Orthopedic Alignment Business Strategies Webinar; FASAPAC Solicitation Authorization Form; City of Joliet Challenges Relocation of Key Hospital to Outside of City; Seeking Indepedent Administrators and Surgeons in Orthopedic-, Neurosurgery- and Pain Management-Driven Facilities to Speak at June 2008 Conference
Reply: becker@beckersasc.com

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October 15, 2007
In This Issue
Get Insight on the Orthopedics Industry: Register for Webinar, Dec. 5
Hot Topics for ASCs: Improving Profitability and Healthcare Information Technology
News and Notes
Companies to Watch
Ortho Webinar
Get Insight on the Orthopedics Industry: Register for Webinar, Dec. 5
At a Glance: "Key Thoughts on The Orthopedics Industry"

What you will learn: There are two issues that will be the focus:

  1. A forecast for the next 10 years in orthopedics; and

  2. how ASCs, hospitals and medical device companies should work with orthopedic surgeons.

Who should attend: C-level hospital leadership, vice presidents and other leaders who who work in a orthopedic-physician-relations capacity, orthopedic physician leaders, ASC administrators, ASC owners, and ASC and medical device companies.

When: Wednesday, Dec. 5 at 2 p.m. CST (running time: 60 to 90 minutes)

About the speakers: John Cherf, MD, MBA, MPH, is an orthopedic surgeon at the Chicago Institute of Orthopedics, a clinical advisor for Sg2 and a thought-leader in orthopedics. Dr. Cherf founded the Midwest Orthopedic Institute, an orthopedic physicians group with full integration of diagnostic imaging, rehabilitation, ambulatory surgery and occupational medicine under one roof. He presently practices in Chicago and is once of the founding members of the Chicago Institute of Orthopedics. With more than 15 years' experience and fellowship training in sports medicine, he has served as team physician for several collegiate and professional sports teams in addition to U.S. Soccer. Dr. Cherf has published in numerous peer review journals, speaks internationally, and serves on several advisory boards for healthcare-related businesses.

Scott Becker, JD, CPA, is a partner in and co-chair of the health depatment at the national law firm of McGuireWoods in Chicago. For more information, visit his McGuireWoods profile or www.BeckersASC.com.

Cost: $199 if registering before Nov. 19 (save $50!).

How to register: There are five easy ways.

  1. Fill out and submit the online registration form.

  2. E-mail Jessica Cole.

  3. Call us toll-free at (800) 417-2035.

  4. Download the printable registration, fill out and fax to (866) 678-5755.

  5. Download the printable registration, fill out and mail to 315 Vernon Ave., Glencoe, IL 60022.
Quote ad
Hot Topics for ASCs: Improving Profitability and
Healthcare Information Technology

The Nov./Dec. issue of Becker's ASC Review will feature two topics of primary interest to surgery center physicians and administrators: improving profitability and the use of technology for health information.

One article in the next issue, which subscribers will receive on or about Nov. 1, contains case studies from industry leaders describing how they have turned-around failing or troubled ASCs.

"I am passionate about what Scott Becker has made possible for Knightsbridge, and what we have been able to accomplish. We are a multimillion dollar Center that was in real trouble. Through Scott Becker at McGuire Woods and FASA we are a success," says Dr. Herbert Riemenschneider of Knightsbridge Surgery Center in Columbus, Ohio, "Since learning of the fabulous resource of Becker's ASC Review, I have enrolled in an MBA program. The ASC Review has helped me understand issues such as the final ASC rules of the Medicare Modernization Act and assisted me in writing a required paper for the MBA program on the subject. It will be very useful in initiating action relative to Knightsbridge."

A second featured piece will highlight 10 key IT products for surgery centers and how they can be used by ASCs to become more profitable.

"I enjoy reading articles such as these, which always provide informative input on timely topics of importance to the ASCs," says Caryl Serbin, president and founder of Surgery Consultants of America, a consulting firm that develops and manages ASCs throughout the United States. The sister company, Serbin Surgery Center Billing, supplies outsourced billing services exclusively to ASCs. "I especially enjoy his ability to take convoluted legal issues and make it understandable for the readers."

Becker's ASC Review is also a prime vehicle for advertisers who wish to reach the decision-makers in the ASC industry. It is currently distributed to over 20,000 surgeons, ASC administrators and ASC owners. Not only are advertisers featured in the bi-monthly issues, they also appear on the ASC Review Web site, which receives thousands of unique visitors per month and includes direct links to the advertisers' own Web sites.

"We feel as if Becker's ASC Review is the Wall Street Journal for physicians in the surgical services arena," says Michael Weaver, vice president of acquisitions and development of Symbion Healthcare, one of the nation's leading developers and operators of surgical centers and surgical hospitals, "To not participate in this publication would put us at a competitive disadvantage as it reaches our industry's leaders and decision-makers."

To sign up for the free e-weekly newsletter, visit www.BeckersASC.com. The sign-up form is located in the upper left corner of each Web page.

To subscribe to Becker's ASC Review or to learn more about this valuable publication, click here or call (800) 417-2035.

To learn more about advertising in Becker's ASC Review, click here, or e-mail Scott Becker.

Subscribe to ASC Review
News and Notes

Algorithm for reprocessing of flexible laryngoscopes in AJIC. An article in the most recent issue of the American Journal of Infection Control provides a logic, or algorithm, that healthcare staff can use to evaluate the adequacy of any type of EPA-registered or FDA-cleared biocidal agent for reprocessing critical, semi-critical and non-critical instruments. For example, the algorithm can be used to clarify and demonstrate that quaternary ammonium compounds are inadequate for reprocessing GI endoscopes, among other types of instruments.

The paper also provides minimum reprocessing standards and step-by-step reprocessing guidelines for flexible laryngoscopes; these can be adapted for other types of flexible endoscopes, including cystoscopes. The use of single-use sheaths to cover and protect reusable semi-critical instruments from contamination during clinical use is also covered in the article.

Tips for smart development and construction in an uncertain market. After years of growth in outpatient surgery, there has been a bit of an about-face: Inpatient hospital construction is booming, but the ambulatory surgical facility market is currently in something of a holding pattern.

"There's some caution out there in terms of what the new ASC payment system is going to do with regard to construction of new surgery centers," says Sandy Jacobs, the vice president of development and sales for HBE Medical Buildings. "A couple years ago, physicians would invest the money up front, do some initial design and keep the momentum going on the development side. Now, they're taking more of a wait-and-see approach, not committing to spending dollars before they're sure they have a viable opportunity."

While there are some exceptions, such as in orthopedic-centered ASCs, most multi- and single-specialty projects are proceeding with caution, if at all. The slowdown in expansion and new development is especially marked in specialties hurt by the new ASC payment system, such as GI. But adjusting to a new ASC payment system doesn't mean physicians have to fear development, just that proper planning is all the more crucial.

"If a physician group were to call me and say they're thinking about developing an ASC, I'd first recommend that it hire a consultant to put the business side together," says Mr. Jacobs. "Even if the group is bringing in an equity partner, they need to have financial and operation planning set before it commits to spending major dollars on the facility development side of the new ASC.

The consultant should then lead the way on an exploration of the logistics of the ASC project.

"As a design-build firm, we like to get involved very early and one of the advantage of 47 years' experience is that we can provide concrete cost estimates based on the programming of the project - 2 ORs and a procedure room, 4 ORs, etcetera," says Mr. Jacobs. "We can do that without a large investment on the part of the group, and they can plug that data into their financial model. This lets physicians put together an investment group according to their needs."

Mr. Jacobs says another advantage of the master builder approach is that the company works with the physicians throughout development - it doesn't deal solely with architecture or engineering and turn the project over to another specialist.

"Some hesitate to work with national firms because they're more expensive, but it's not more expensive in the end because we're able to anticipate code and safety issues that arise during projects," he says. "Further, as a big company, we have the ability to be very patient; physician groups can feel free to take their time."

Mr. Jacobs stresses that it is important to work with a firm that understands the current ASC market and builds accordingly.

"Efficiency of space is becoming more important with reimbursement changing; it's a risky proposition to build and hope patients will come," he says. "As both Medicare and managed care reimbursement get more complex, the importance of all the legal and planning issues of development increase in importance. I can design and build a building for you, but you need to do your homework before you commit to this undertaking."

"Green" Slocum Surgery Center opens for business. Slocum Orthopedics, a 20-physician practice, recently opened its surgery center for business. The 14,215-square-foot, four-OR facility opened on time, under budget and with zero Medicare deficiencies with the help of national turnkey operational development and management provider Pinnacle III.

The building was designed to be environmentally friendly and energy efficient, optimizing natural light for higher quality indoor lighting and reducing electricity consumption; for example, the building uses mercury-free HVAC and lighting and wind power from EWEB. Slocum Surgery Center was designed to minimize the use of natural resources and draw on rapidly renewable resources while meeting or exceeding all conventional building performance criteria; the facility is constructed from recycled building materials, certified wood products and alternatives to brominated fire retardants. The group anticipates that the building will be granted silver certification from Leadership in Energy and Environmental Design, or LEED.

Slocum Surgery Center expects to add additional physicians and employees to its 150-person staff over the next few years, as demand for orthopedic services continues to grow. "Slocum's orthopedic surgeons, along with a dedicated cadre of anesthesiologists, will provide an exceptional surgical experience for their patients in this state of the art facility," says Gregg Melton, MD, the center's medical director.

City of Joliet challenges hospital relocation. For a copy of a white paper regarding the opposition by the city of Joliet, Ill., to the proposed relocation of Silver Cross Hospital to outside Joliet, please go to www.BeckersASC.com and look under "Hot Topics," or e-mail Scott Becker.

Sign FASAPAC's solicitation authorization form. To help FASAPAC, FASA's political action committee, better serve ASCs, please download the solicitation authorization form, fill it out and return to FASAPAC.

Ask Scott Becker. If you have an ASC-related legal or business question, e-mail Scott, and we'll publish the answer in a future E-Weekly. Please indicate when asking whether you prefer to remain anonymous.

Call for proposals. We are seeking speaking proposals for the Orthopedic, Spine, and Pain Management Driven ASC Conference, to be held in Chicago June 19 to 21. Should you have suggestions, please e-mail Scott Becker.

Save the dates for next year's conferences! Please save the following two dates for next year's conferences:

  • Orthopedic-Driven ASC Conference -- June 19 to 21, 2008

  • FASA and ASC Communications: Improving Profitability and Business and Legal Issues for ASCs -- Oct. 23 to 25, 2008.
Companies to Watch

We are delighted to highlight the following companies in this week's E-Weekly.

Manning Search Group. Roger Manning, Cathy Montgomery and their healthcare search consultant team offer middle management and executive search and recruitment with ASC-industry-specific focus. MSG has several national and regional ASC employers as clients covering free-standing ASCs, hospital-owned ASCs as well as specialty surgical hospital venues. The company's most common searches consist of business office managers, CFOs/controllers, administrators, clinical directors, managed care directors, VPs of development and multi-site management such as regional VPs. We have also been involved in C-suite placements. Functional areas include operations, clinical, finance, reimbursement, development and sales. E-mail Roger Manning or Cathy Montgomery, call them at (636) 447-4900, or visit Manning Search Group online.

TRY Health Care Solutions. TRY Health provides consulting services to large healthcare systems, group practices, independent physicians and surgery centers throughout the United States. Tom Yerden, president of TRY Health, is a recognized leader in the industry with over 25 years of service spanning the development of more than 70 surgery centers and the founding of Aspen Healthcare in 1992. Tom is a member of the FASA board of directors and was a finalist for the 2003 Ernst & Young, Entrepreneur of the Year. Tom speaks at many national conferences each year and spends his free time assisting his wife Carol in raising their herd of 70 Alpacas in Salmon, Idaho. You can contact Tom at (208) 865-2400.

Medical Facilities Corporation. Medical Facilities Corporation is a publicly traded company and a leading acquirer of majority interests in high quality specialty hospitals and ASCs. Founded and managed by physicians and with a market capitalization over $300 Million, MFC is the ideal partner for physician owners. MFC permits physician owners to retain local operational control while benefiting from being part of a larger prestigious healthcare organization. MFC currently owns an interest in four specialty hospitals with a total of 28 operating rooms, 51 recovery beds and more than 500 physicians and surgeons. Visit MFC's Web site or contact Steven Hartley at (866) 766-3590 x105.

 
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If you have any questions on any of the items listed in this letter, please contact me at (312) 750-6016 or by email at sbecker@mcguirewoods.com.

 
IF YOU'D LIKE TO BE ADDED TO OUR E-WEEKLY UPDATE FROM BECKER'S ASC REVIEW, PLEASE E-MAIL MYSELF AT SBECKER@MCGUIREWOODS.COM OR GO TO WWW.BECKERSASC.COM.
 
Very truly yours,
Signature
Scott Becker
SB/kjd


Scott Becker, JD, CPA
sbecker@mcguirewoods.com
(312) 750-6016

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