How 15 entities are shifting strategy in 2019 — Tenet, Surgical Care Affiliates & more

Value-based care, high-deductible health plans and changes in outpatient volumes have led ASCs, management companies and health systems to adjust their strategies in 2019.

Fifteen organizations with new strategies for success:

Deerfield, Ill.-based Surgical Care Affiliates plans to add 20 ASCs to its portfolio this year, and value-based care is a key part of its growth strategy, SCA Chief Financial Officer Caitlin Zulla told CFO.

Sonja Clapp, director of AdventHealth Surgery Center Shawnee Mission in Lenexa, Kan., said her center could increase ophthalmology volume and expand into total joints.

Polaris Spine & Neurosurgery Center in Atlanta plans to expand west in the next eight months while growing its lumbar fusion business and negotiating with new payers to capture more volume.

Madison (Miss.) Physician Surgery Center and Mississippi Sports Medicine and Orthopedic Center in Madison could branch into value-based spine and shoulder arthroplasty procedures.

Over the next five years, clinically integrated care networks will play a much larger role for Phoenix-based HOPCo, the management company of The CORE Institute in Mesa, Ariz.

Joseph D'Agostino, the administrator of Advanced Surgery Center-Perimeter in Sandy Springs, Ga., told Becker's ASC Review that his organization is "heavily investing in ENT and general surgery in one surgery center and heavily invested in ophthalmology in the other surgery center."

Before opening, Colchester, Vt.-based Green Mountain Surgery Center sought board approval to add ophthalmology and plastic surgery services to its offerings. Manager Amy Cooper said she expects lower case volume for the previously approved gastroenterology, gynecology, pain management and general surgery services because physician availability decreased during the ASC's lengthy development process.

Raleigh, N.C.-based Compass Surgical Partners and San Antonio-based St. Raphael's Surgery Center partnered in late 2018. Going forward, Compass will implement its Core operating system at the center, recruit physicians to join the facility and focus on growing the center's reputation as a complex surgery destination.

Kris Kilgore, RN, administrative director of Grand Rapids-based Surgical Center of Michigan, explained how her center is adapting to higher deductibles and increased patient responsibility. The ASC assigned one employee from accounts receivable to contact patients two weeks before surgery and place a follow-up call three days prior to surgery, if necessary.

Boston Out-Patient Surgical Suites' top priorities in 2019 include maximizing volume, as well as efficiency and cost savings for new service lines such as total joints and spine, according to Administrator Gregory P. DeConciliis.

In 2019, Aspen (Colo.) Valley Hospital plans to expand its care footprint by expanding available medical office space, upgrading technology and recruiting physicians. Its population health initiative involves providing services at Midvalley Surgery Center in Basalt, Colo.

Arcata, Calif.-based Mad River Community Hospital fired up to 15 employees and announced a restructuring plan after an employee said the system suffered significant outpatient-related financial losses.

Lockport, N.Y.-based Eastern Niagara Hospital is scrapping its maternity and outpatient services as part of a transformation plan. The hospital is betting heavily on emergency services as it pivots away from maternity and outpatient care. Eastern Niagara's maternity service and outpatient utilization rates fell in recent years.

Shriners Hospitals For Children-Tampa (Fla.) will transition away from its inpatient model to an entirely outpatient, same-day model in August. Tampa will be Shriners' fifth outpatient-only hospital out of the 20 it operates nationally.

Despite inpatient growth, Dallas-based Tenet Healthcare's East Cooper Medical Center in Mount Pleasant, S.C., is looking to accommodate shifting demand for services. "There is certainly a national trend, and it's just going to accelerate, where a lot of work that is being done now in the hospital is going to move into the outpatient setting," said Patrick Downes, East Cooper Medical Center CEO.

More articles on transactions/valuation: 
4 new joint venture ASCs – April 2019
Surgery Partners reports $417M in revenue & more – 10 ASC industry notes
How ASC Medicare payments have grown in the last 5 years

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