Mr. McCarville and Mr. Sheppard identified four reasons hospitals and health systems are embracing ASC joint ventures:
1. Health systems can cultivate better relationships with physicians by working with them as business partners, in turn helping to prevent poaching, facilitate recruitment and limit new competition.
2. Partnering to develop an ASC or buying into an existing center allows hospitals to retain a significant percentage of the revenue they might otherwise lose to physician-owned ASCs.
3. Performing lower-acuity cases in an ASC allows hospitals to keep operating rooms open for “high-ticket” procedures, and it provides a more economical alternative to developing more OR space.
4. Because of payment caps that several large payers have instituted for some high-volume procedures, a procedure done in a hospital outpatient department may be reimbursed at a lower level than it would be in an ASC.
More articles on surgery centers:
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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.
