As reimbursement issues and a heated consolidation race continue to tighten the physician practice market across the U.S., ASC ownership has emerged as an avenue for physicians to reclaim autonomy of their medical practice while staying financially afloat.
But ASC ownership differs from traditional employment models or other practice ownership in significant ways. Two ASC leaders recently joined Becker’s to share their thoughts on the misconceptions physicians may hold about ASC ownership and what they should know before getting involved.
Editor’s note: Responses have been lightly edited for clarity and length.
Question: What do physicians most often misunderstand about ASC ownership? What should physicians know about running an ASC before they get involved in ownership?
Paul Sabini, MD. Medical Director of Premier Dermatology and Cosmetic Surgery (Newark, Del.): I think many physicians do not fully appreciate the benefits of ASC ownership. It isn’t simply that there are financial rewards. The greater reward is that surgeons have the opportunity to redirect the efforts in the OR toward the care of the patient. I think the vast majority of surgeons are laser focused on good outcomes for their patients but in a hospital OR there are often competing forces that interfere with efficiency which ultimately erodes patient care.
Ken Hammer. Administrator of Bronson Orthopedic Surgery Center (Kalamazoo, Mich.):
[Physicians can misunderstand] what makes them successful, and success if measured in different ways by different investors/owners. There needs to be flexibility along with trust in the ASC leadership. There is a saying we use in our ASC about block time: “Fill it or be flexible.” Additionally, if the physicians are accustomed to only operating in a hospital setting, once they start working in a well-run, efficient ASC, their time to complete the case (due to staff knowing what their preferences are, opposed to where they may work in a larger hospital setting where they get a traveler, or someone who doesn’t work with that specialty very often/ever), and of course much, much quicker turnover time in an ASC setting, they will be able to do more in the same amount of time. Regarding profitability, each facility is different, and if it is a start-up, the distributions may take a while, as contracts are negotiated, and case volume ramps up.
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.