On average, elective surgeries represent 73 percent of an orthopedic practice's total volume, according to the American Alliance of Orthopaedic Executives. When COVID-19 halted these cases, the devastation was profound.
For orthopedic groups, regaining financial health won't be easy, but it can be done with a sustainable, safety-focused plan in place, said William Hanlon III, a principal of Hammond Hanlon Camp, a healthcare-focused investment banking firm.
In a white paper published June 23, Mr. Hanlon outlined five characteristics of orthopedic practices that are well-positioned to move forward:
1. A strong management team
2. Opportunities to consolidate and centralize back-office work
3. Status as a market leader
4. The ability to derive significant volume from ancillary services
5. ASC ownership
Returning to financial health after such a significant business disruption "necessitates targeted communications to key patient groups — particularly baby boomers and older seniors — to help patients feel secure in seeking needed care," Mr. Hanlon said. "It demands that orthopedic groups understand their options for emergency assistance. And it requires that practices ramp up cost-cutting initiatives, such as by renegotiating contracts with vendors and facility leases, to mitigate losses associated with the pandemic."
Click here for more insights from Mr. Hanlon and Hammond Hanlon Camp, also known as H2C.