Changing Relationships Between Orthopedic Physicians, Hospitals and Payors

At the 18th Annual Ambulatory Surgery Centers Conference in Chicago on Oct. 27, John Cherf, MD, MPH, MBA, president of OrthoIndex; Steven Stern, MD, MBA, medical director and the vice president of neurosciences orthopedic and spine for United Healthcare;
and Michael Redler, MD, The OSM Center, participated in a panel discussion moderated by Scott Becker, JD, CPA, publisher of Becker's ASC Review, on relationships between orthopedic and spine surgeons, hospitals and payors.

Dr. Stern began by discussing the importance of orthopedics to payors. "Payors are very interested and concerned with orthopedics," he said, adding 1 out of every 8 dollars spent by commercial payors goes to orthopedic care. Thus, orthopedic surgeons wield significant power in how healthcare dollars are spent. At the same time, the relationships they have with payors and device companies are changing, creating a some uncertainties.

A major uncertainty surrounding orthopedics is the potential growth in orthopedic surgeon employment by hospitals. According to Dr. Cherf, AAOS data suggests 8 percent of orthopedic surgeons are currently employed. While this number is still low, he cautioned the audience to not underestimate the lengths health systems could go to employ surgeons.

If employment grows, it could put the relationship device companies have with physicians in jeopardy. That is, as hospitals work to standardize implant use, device company representatives may have to work with hospital administrators and supply mangers in addition to or instead of physicians directly.

However, the panelists mentioned that orthopedics as a specialty is well positioned to avoid hospital employment due to the large scale of comprehensive musculoskeletal groups in many markets, most of which operate ambulatory surgical centers.

Dr. Redler discussed his experience working in private practice for 22 years, saying what he does day-to-day has not changed in those years. However, he did agree that challenges have grown. As a result, the strategy for his business has changed. "Try to be as efficient as you can, and to try to spend the most time you can in one place," he said.

Related Articles on Orthopedics:

7 Tips for Success With Spine Surgery in ASCs
Key Thoughts on Hand and Knee Surgery in ASCs: What Makes Sense Financially


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