Peoria’s population of a little over 100,000 has not changed for the past decade. Three hospitals and two other ASCs provide surgery services. That means, “if one of them is gaining volume, it’s because someone else isn’t,” Mr. Feldman says.
Mr. Feldman’s six-OR ASC is 60 percent owned by OSF Healthcare, a seven-hospital health system based in Peoria, with the rest owned by physicians. A lack of population growth and the recession’s threat to existing volume has presented significant challenges. The center’s volume was down by 14 percent in the first two months of 2009, compared with the same period in 2008, but it recovered and finished the year with volume up 5 percent over 2008.
Mr. Feldman says volume improved because unemployment has abated and the center has taken steps to improve its market position. A small, self-contained market presents limitations but provides advantages, too. “There are a lot fewer players here, so you can become fairly knowledgeable about the competition and potential growth opportunities,” he says. “It’s easier to see how things will play out.”
The following strategies, according to Mr. Feldman, have helped the Center for Health ASC prosper in its small, self-contained market.
Offer a wide variety of services. This ASC is equipped for general, plastic, gynecology, urology, orthopedics, eye, ENT, GI, pain management. This means the ASC is not dependent on any one specialty and the payments it receives.
Physicians need to be accountable for scheduling. Unused block time needs to be reapportioned. “Schedulers need to talk to the doctors instead just letting the time be unused,” Mr. Feldman says. If physicians are not filling their schedule, “find other doctors who are looking for extra time,” he advises.
Get into insurance networks. The Center for Health ASC is accepted by most major payors. Even the major local hospitals are not in as many networks, Mr. Feldman says.
Reach out to new physician groups. Mr. Feldman is constantly looking around for new physicians. He makes sure to meet surgeons face-to-face or at least talk with the practice administrator.
Keep up with new technology. “We are constantly trying to upgrade with cutting-edge equipment,” Mr. Feldman says. The ASC spent $250,000 last year and is on track to spend at least that amount this year on new equipment.
Keep patients satisfied. The center is a high performer in Press Ganey surveys of patients and has contracted with one payor to use these scores as part of the formula to for reimbursement.
Learn more about The Center for Health Ambulatory Surgery Center.
