As consolidation activity accelerates across the ASC industry, Avon, Conn.-based Constitution Surgery Alliance CFO Philip Cooksey said the company is staying deliberately selective about who it partners with, leaning on quality as a non-negotiable rather than chasing scale for its own sake.
Mr. Cooksey joined Becker’s to discuss where he sees the biggest risks in ASC growth over the next couple of years, and how CSA is thinking about its role in the industry’s consolidation wave.
Question: What obstacles or pitfalls do you see in the next couple of years?
Philip Cooksey: We’re really focused on smart growth. There’s a general sense that there’s a lot of growth still to come — organically within ortho, plus expected tailwinds as cardiovascular procedures continue migrating to ASCs. But what we want is smart growth with aligned partners who share our focus on quality as a non-negotiable, and on patient experience and outcomes. We’ve got a differentiated outcomes program — we track patients 90 days post-procedure and benchmark readmissions and total cost of care against other sites of care, and we see a real difference. There’s a lot of growth happening for growth’s sake out there; that’s not what we’re interested in. We’re focused on enduring value with the right long-term partners, not a quick, rapid ascent.
Q: How is CSA looking at consolidation in the ASC space right now, and what’s your read on where it’s headed?
PC: Everybody’s thinking about this in various forms right now. There’s a lot of momentum in the space, and we’re not blind to that, but we don’t want to get swept up in the tide — we want good partners in it for the long term. There’s a lot of opportunity in helping smaller, independent ASCs navigate the complexity of quality reporting, outcomes driven clinical decisions, and payer contracting. And importantly, in addition to playing a role in supporting independent practices, we believe ASCs are uniquely suited to be able to serve as a partner to both health systems and payors. The core tenets of our model around increasing access to affordable and high quality care – that matters to all constituents in the healthcare ecosystem. ASCs are in a distinct position to be able to serve as a conduit or bridge to that for both payors and health systems and we look for opportunities where in providing a world class patient and physician experience all the key parties can win in the long run.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.
