Suzi Cunningham, administrator of Advanced Ambulatory Surgery Center in Redlands, Calif., joined Becker’s to discuss the consolidation trends she is monitoring.
Editor’s note: These responses were edited lightly for brevity and clarity.
Question: What consolidation trends are you eyeing?
Suzi Cunningham: I can’t help but notice the consolidation occurring amongst the payers. We have major payers that now (indirectly) own medical groups, independent physician associations, hospitals, pharmacies, etc. … It has been argued that the consolidation will drive improvements in care coordination and increase efficiencies, but what I see are companies buying up their competition and thereby creating greater power in their market.
The CVS purchase of Oak Street will undoubtedly result in CVS seeking to extract $800 million in profits that were intended for healthcare services. This underscores the fundamental problem where there is now a very troublesome expansion of for-profit corporations looking at patients as sources of revenue and profit and not as humans in need of care.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.