1. They have higher operating expenses. Operating expenses in orthopedic-driven surgery centers come in at an average of $5,169, slightly higher than the industry average of $4,881. The bulk of the difference is due to medical and surgical costs, which average over $300 higher than the industry mean. Employee salary and wages, occupancy costs and other general and administrative expenses are also higher than the industry average, while taxes and benefits, insurance, depreciation and amortization and management fees are lower. The increased operating expenses may be offset by favorable reimbursement, however, because net revenue in orthopedic-driven ASCs is also higher than the industry mean, at $7,948 compared to $6,883.
2. They perform fewer cases. Compared to the industry average of 4,698 cases performed per year, orthopedic-driven ASCs only perform an average of 3,484 cases. They average 13.9 cases per day (compared to 18.8 in all ASCs). Surgical cases are slightly higher (787 compared to 705 industry-wide) but non-surgical cases are drastically lower. While other ASCs perform an average of 1,169 non-surgical cases every year, orthopedic-driven centers come in at 627, just over half of the industry average.
3. Fewer physicians perform the bulk of the cases. Orthopedic ASCs rely on fewer core physicians to perform the majority of their cases, with 34 percent of cases performed by the center’s top two physicians and 62 percent of cases performed by the top five physicians. In contrast, the average ASC sees 32 percent of cases performed by the center’s top two physicians and 53 percent of cases performed by the top five physicians. Around 84 percent of cases in an orthopedic-driven ASC are performed by the top 10 physicians in the center, compared to 73 percent in all ASCs.
4. They rely more on workers’ comp. The nature of on-the-job injuries means orthopedic-driven ASCs see more business from workers’ comp patients — for example, an injured worker is generally more likely to need shoulder surgery than a colonoscopy. Workers’ comp accounts for 12 percent of payor mix in an orthopedic-driven ASC, twice as much as the six percent reported by all U.S. centers. Orthopedic-driven centers see a smaller percentage of Medicare patients (17 percent of payor mix compared to 25 percent) and more commercial patients (67 percent compared to 59 percent).
5. They staff more employees. Orthopedic-driven ASCs staff slightly more employees than the industry average, with 24.4 FTEs on the payroll compared to 21.0. The number of nurses and techs is slightly higher in orthopedic-driven centers, while the number of administrative personnel is higher in the industry as a whole and the number of administrators (one) is the same for both.
6. They pay higher wages and lower administrator salaries. Perhaps on account of their increased net revenue, orthopedic-driven ASCs pay their employees more than the industry average. Nurse staff earn $33.60 per hour compared to $31.57; tech staff earn $21.77 compared to $20.33; and administrative staff earn $23.78 compared to $23.00. The total average hourly wage is more than a dollar higher than the industry mean — $27.71 compared to $26.44. Administrators, however, fare slightly worse at orthopedic centers. The average ASC administrator makes $106,794 across the industry, while ASC administrators at orthopedic-driven centers make an average of $101,213.
Read more about orthopedics:
–SSM Orthopedics Acquires 14 Physicians
–Developing a Spine Center: 3 Reasons Why Now Is the Time
–8 Design Specifics for Development of Spine Surgery Centers
