1. High unemployment, falling surgery volume. Unemployment is high all over Michigan. The auto industry affects everything else. “Volume is down,” Mr. Cosgrove says of his ASC, “and it’s even worse than last year.”
2. Payors are cutting payments, not raising them. Rather than entertain the possibility of rate increases, payors have been cutting rates. For example, Blue Cross Blue Shield of Michigan reduced many reimbursements for ASCs on July 1.
3. ASC still has a positive bottom line. While volume at the Eye Surgery Center has been off, it has fared better that some other ASCs or the local hospital. “We have been very aggressive with supplies and cutting back ours to match lower volumes,” Mr. Cosgrove says. “We are still giving raises at performance reviews. Many other healthcare organizations in the area are not doing this.”
4. New facility, new equipment. The surgery center is two and a half years old and the equipment is all state-of-the-art. The ASC has two ORs and one procedure room. Consequently, “we do not have to buy any new equipment,” Mr. Cosgrove says.
5. Active physician-owners. There are nine investing physicians and St. John Providence Health System holds minority interest. “We have a very active group of physician-owners,” Mr. Cosgrove says. “Employees are very committed to the center.”
6. Awaiting influx of Medicaid patients. The state plans to allow Medicaid patients to go to privately owned surgery centers for the first time. The legislature was supposed to implement the policy last Jan. 1, but the start-up was postponed until next Jan. 1. While reimbursement rates have not been published, Mr. Cosgrove is confident the ASC is much more efficient than hospitals, where Medicaid patients traditionally go, and has a good chances of making money on Medicaid.
7. Strong involvement in politics. The Eye Surgery Center is an active participant in the Michigan Association of ASCs. On the association’s behalf, the center hosted a meeting with an influential state senator who is redesigning the state’s worker’s comp law.
Learn more about Eye Surgery Center of Michigan.
