Accepting unprofitable cases for volume’s sake could be the costliest mistake an ASC makes in the next year, according to leaders.
Two ASC leaders joined Becker’s to discuss the one decision that could make or break an ASC’s bottom line in the next 12 months. Both said case mix matters more than raw volume. One warned against taking low-margin cases just to fill the schedule. The other said losing a single physician can unsettle reimbursement, supply costs and staffing all at once.
Editor’s note: Responses have been lightly edited for clarity and length.
Question: What’s the one decision that could make or break an ASC’s bottom line in the next 12 months?
Shelly Harris, RN, BSN. Administrator of Advanced Surgical Care Clearwater (Fla.): Focusing on volume as your main metric and not being equally if not more concerned with case selections based off of profit margin. Many ASCs preach volume, volume, volume and accept cases that are not profitable just to have the volume. Although there are times that strategy helps with physician retention, engaging physicians to bring higher profitable cases to your center and their understanding of the payer mix could be very beneficial to your center.
Sarah Scrimpsher, BSN, RN. Clinical Director and Administrator of Proffer Surgical Center: Income vs. expenses. A big indicator of this for us is case mix, which leads to reimbursement rates, supplies needed, staff needed, etc. We are losing a physician for the foreseeable future, and it has made our bottom line a little uncertain because of all the factors that follow cases lost. Though our supply expense will be lower, our reimbursement payments will be lower.
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.
