Westchester, Ill.-based Regent Surgical Health's CEO Chris Bishop shared his insight on how value based care is affecting ASC industry growth.
Here are the key trends to know:
1. Hospital joint ventures are the fastest growing segment of the surgery center space.
"Historically, hospitals were motivated to perform cases in the hospital where they earned 100 percent of the fee-for-service payment. Now, with value-based-care, health systems are really attempting to transition patient care to the least expensive, clinically appropriate setting," Mr. Bishop said.
2. Another trend affecting the ASC industry is major consolidation.
"As it becomes more difficult to manage these surgery centers and it requires greater resources to maintain an attractive margin, more surgery centers will partner with hospitals, with Regent and with publicly traded companies so they can continue to thrive under new reimbursement rules," he said.
3. Changes to payers like the emergence of employer-owned health plans is also helping drive ASC growth through consolidation.
"If you're a standalone surgery center, you likely don't have the resources to negotiate with seven to ten new payers – like Amazon and Walmart. So, surgery centers will continue to move towards joining larger groups," Mr. Bishop said.