The members of the panel included Blair Rhode, MD, an orthopedic surgeon practicing at Orland Park (Ill.) Orthopedics; Jack Bert, MD, adjunct clinical professor at University of Minnesota School of Medicine, founder of the Cartilage Restoration Center of Minnesota in Woodbury and medical director of the Minnesota Bone & Joint Specialists in Maple Grove and St. Paul; Michael Redler, MD, founder of The Orthopedic & Sports Medicine Center; and Jon O’Sullivan, principal and founder of HealthEconomix. Amber McGraw Walsh, partner at McGuireWoods, moderated the panel discussion.
One of the challenges facing orthopedic practices and ASCs, as identified by the panel, was the financial impact of implants. According to Dr. Rhode, hospitals need to take control over the wholesale implants process and convince their physicians that wholesale implants aren’t necessarily of poor quality. Hospitals should also share the savings generated from using wholesale implants with their physicians. Once physicians see that using these implants don’t lower quality and that they also generate savings, they might be more inclined to use them, said Dr. Rhode.
The issue of bundled payments was also brought up, and Dr. Redler said that this is a big issue because “someone is going to get the short end of the stick.” The bundled payment model offers a single payment to healthcare facilities for a procedure, which is then divided among those who were responsible for performing the procedure as well as those responsible for the care that preceded and followed it. According to Dr. Bert, physicians have to make sure that they aren’t getting the short end of the stick, and one way to ensure that is for physicians to appeal to their commercial payer and try to create a bundled payment model for their practice or ASC.
The final issue discussed was co-management agreements, and according to Mr. Sullivan these agreements are tricky because they are usually a defensive move on a hospital or surgery center’s part. Healthcare organizations offer co-management agreements to physicians who want to build their own surgery center to prevent competition in the marketplace. Ultimately, these agreements are being implemented in inefficient ways, and going forward the industry needs new and more effective economic models, said Mr. Sullivan.
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.
