Navigating an Orthopedic Practice and its ASCs Through a Challenging Healthcare Environment

David Fitzgerald, CEO of Proliance Surgeons, gave a presentation titled “Navigating an Orthopedic Practice and its ASCs Through a Changing Healthcare Environment” at the 9th Annual Orthopedic, Spine and Pain Management-Driven ASC Conference in Chicago on June 9, 2011. Proliance Surgeons was created in the Washington area to keep physicians in charge of the associated practice and ambulatory surgery center locations. Proliance was able to do this by:

•    Having the same tax ID
•    Covering a large geographic spread
•    Recruiting specialized surgeons at every location
•    Not joint venturing
•    Bringing cases to the ASCs
•    Engaging in risk management
•    Participating in pay-for-performance and coordinated projects
•    Gaining purchasing and contracting power with its large size

During contract negotiations, surgeons must prove their outcomes are good, which Proliance did through meeting pay-for-performance goals. Surgeons groups must invest in these programs to share in the risk; the more you invest the bigger return you stand to receive. In one instance, Proliance worked with workers’ compensation on pay-for-performance contracts. During this pilot project, the participants reported 12 fewer days of time loss and medical costs were down by $704. Proliance has also engaged in similar programs with commercial payors.

Throughout the process of creating and undertaking pay-for-performance contracts, Proliance and payors built a more trusting relationship through regular, transparent meetings. Mr. Fitzgerald said he now finds commercial payors sharing data with Proliance as they work together toward providing better and cost-effective care. Running a successful group practice and surgery center in the future will be more focused on having good relationships with patients, surgeons and payors, says Mr. Fitzgerald.

A second concern for many large practices and ASCs is competition with hospitals as orthopedic surgeon employment increases. In many communities, it may be necessary to collaborate with hospitals to maintain market share. Practices and surgery center physicians should also have electronic healthcare records that interface with local hospitals for better coordinated care.

Read more about Proliance.

Related Articles on Orthopedic and Spine-Driven ASCs:
The Best Ideas for Orthopedic Spine and Pain Management-Driven ASCs
How to Add Higher Acuity Spine and Orthopedics to an Existing ASC
What Percentage of Orthopedic Surgeons Will Be Employed in 5 Years? 10 Responses

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