Crouse Hospital believes Syracuse Orthopedic Specialists' new orthopedic surgery center could cost the hospital up to $1.9 million in lost revenue, Syracuse.com reports. Both organizations are based in Syracuse, N.Y.
Here's what you should know:
1. New York is a certificate-of-need state, and SOS received state approval to open a new surgery center in Cicero, N.Y., after the practice grew too large for its old center. The practice currently staffs a surgery center in Syracuse, which it will continue to run for lower acuity cases and pain management.
2. SOS plans to open the new surgery center next year, built for total joint replacement surgeries. It's expected the center will generate $10.6 million in profit its first year, with that number hitting $12.7 million by year three.
3. However, in state documents Crouse Hospital reported, that the new center could potentially reduce its revenue by up to $1.9 million annually. SOS surgeons performed 551 outpatient and 1,409 inpatient procedures at Crouse in 2016.
4. In an effort to alleviate pressure on Crouse, SOS physicians said they would not transfer any of the outpatient cases from the hospital to their new center. State regulators also support the new center despite Crouse's concerns.
5. SOS anticipates performing 9,882 procedures at its new center during the first year of operation, by year three, it anticipates performing 10,283 operations.