Vice President of Business Development Don Phalen, presented six key trends driving change in the outpatient landscape at Becker’s ASC Review 24th Annual Meeting: The Business and Operations of ASCs. He was joined on the podium by Mark Murphy, Chief Strategy Officer at St. Joseph’s Health, Syracuse, NY.
Highlights of the trends shared for ambulatory surgery center (ASC) leaders and physicians include:
- Macro Trend: Value-Based Care – The overarching trend, according to Phalen, is the shift toward value-based care: “The healthcare industry’s evolution away from fee-for-service care continues to gain traction and is changing the game for ASCs as the quest for value replaces volume, and hospital systems are striving to optimize ASC platforms by embracing the strategic, structural and operational approaches to enhance value-based care strategies,” he said.
- Total Joint Replacement – Phalen and Murphy discussed the steady migration of total joint replacement surgery from hospitals to ASC settings, citing that outpatient volume is projected to grow by 45 percent by 2025.
- Bundled Payments – Armed with statistics suggesting bundles are the fastest growing alternative payment type, Phalen pointed to the savings possible for ASCs using this alternative, while Murphy stressed the importance of orthopedic bundles in payer rate negotiations.
- Hospital Outpatient Department Conversions – “Hospitals and health systems are no longer looking to outpatient departments to generate revenue,” Phalen said. “What’s more important to them is to manage the cost of an entire episode of care. That means many are interested in working together with ASCs and physician groups as partners in care.”
- Employed Physicians as ASC Partners – Once ill-advised, offering employed physicians ownership in ASCs has become increasingly popular as health systems build strategic ambulatory channels. Phalen suggested leveraging ASC joint ventures not only to establish partnerships with local physician groups, but as important physician recruitment and retention tools.
- Specialty Centers: Finally, the two leaders talked about building robust ambulatory arms that include a diversity of specialties, citing cardiology as a sought-after outpatient specialty.
To learn more about these trends, download a new guide developed by Regent Surgical Health that features important insights for ASCs that forecast growth through value-based care strategies, new payment models, and the continued shift of higher acuity cases to ASCs, and more.