How ASCs weather financial pressures

Despite ongoing financial pressures in the healthcare industry, ASCs remain a resilient and growing force. While some predict financial constraints will drive consolidation, many industry leaders are confident ASCs will continue to thrive.

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Sean Gipson, CEO and ASC division president of Remedy Surgery Center in Houston, noted the sector’s agility as a key advantage. 

“The cost of consumables and capital equipment isn’t different between hospitals and ASCs,” he told Becker’s. “But we have to be incredibly cost-conscious. Where we make up ground is flexibility. We can move faster than hospitals and avoid the rigid constraints they have.”

That flexibility extends to patient scheduling and operational efficiency. Unlike hospitals, where outpatient procedures can be delayed by emergency cases, ASCs offer a more predictable experience for patients and physicians.

ASCs also present a major financial advantage for insurers and patients. The costs of common medical procedures are as much as 58% more expensive when performed in hospital outpatient departments compared with ASCs or physicians’ offices, according to an analysis by the Blue Cross Blue Shield Association. 

“If I can place a pacemaker for $10,000 less, that reduces out-of-pocket costs, especially for patients with high deductibles,” Mr. Gipson said. “The financial benefits of ASCs make them an attractive option for both insurers and patients looking to minimize expenses without sacrificing quality of care.”

ASCs also differentiate themselves through their structure. Unlike large hospital systems, which operate as bureaucratic institutions, ASCs function more like independent businesses with a direct, personalized approach to patient care.

Jeffrey Flynn, administrator and COO of Gramercy Surgery Center in New York City, told Becker’s this difference in structure impacts not only patient care but also workforce dynamics, financial viability and long-term sustainability.

For Mr. Flynn, running an ASC means taking direct ownership of challenges, which extends to daily operations. In ASCs, administrators and staff work closely with physicians to optimize efficiency, particularly in scheduling. Unlike hospitals, where departmental miscommunication can often cause delays and finger-pointing, ASCs emphasize direct engagement and swift resolution, he said.

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