From regulatory hurdles to misperceptions about competition, three ASC leaders spoke with Becker’s about what they see as the most misunderstood aspects of ASC ownership.
Question: What is the most misunderstood aspect of ASC ownership by policymakers or hospital systems?
Editor’s note: These responses were edited lightly for clarity and length.
Eric Callan. CEO of at LifeLinc Anesthesia (Memphis, Tenn.): I think one of the biggest understandings is that currently many hospital systems see ASC as a threat to their current business model. I/LifeLinc believe that ASCs in a hospital system can enhance care and improve access. In addition it has the added benefit of getting surgeons engaged in more efficient care as they generally have a financial stake in the ASC. However, some policymakers don’t see it this way — we have seen policymakers view physician/provider ownership as a conflict of interest, so continual education to policymakers is of paramount importance.
Matthew Cavanagh. Principal of CliftonLarsonAlan (Maumee, Ohio): One commonly misunderstood aspect is the complexity involved in running an ASC. Some may assume ASCs are easy to operate, but that’s not the case. ASCs must meet patient expectations for access and convenience while providing high-quality care and adhering to strict regulatory standards.
They also face reimbursement and expense pressures — like labor, supplies and technology — similar to hospitals, but without comparable economies of scale. This often means a single administrator is responsible for managing a wide range of tasks.
In short, ASCs represent a distinct care setting that faces many of the same challenges as larger healthcare institutions.
DJ Hill. CEO of Compass Surgical Partners (Raleigh, N.C.): When a health system partners with physicians, it changes the dynamic from employer to partner. This partnership aligns incentives between the two parties to create a high quality, lower cost site of care for patients. When physicians are doing cases in a hospital owned OR, they are not cognizant or incentivized to be considerate of the financial aspect of performing surgeries including things like aligning on implants or medical supplies between all parties to drive down cost per case. When you can create an environment where everyone is sitting on the same side of the table, everybody wins.
