The ASC market is growing steadily, spurred by factors including improved surgical capabilities, an aging population, and technological advances. According to a report from the business intelligence company Research and Markets, the ASC market is expected to increase to between $52 billion and $55 billion by 2025.
A few of the growth details from the report that are relevant for ASC leaders include physician benefits, shifting procedures to ASCs, expanding specialties, and creating better margins through efficiency.
The majority of ASCs are physician-owned and unaffiliated with a hospital or health system. More growth is predicted in ASCs than in hospital outpatient departments (HOPDs), and private payers also offer ASC physicians higher reimbursement rates. Physicians at ASCs perform more than 50% of all outpatient procedures, and procedure volume is projected to rise 15% by 2028.
Shifting Procedure to ASCs
The number of outpatient procedures performed in ASCs is projected to grow across most service lines through 2022. Oregon Surgical Institute (OSI), a joint venture with surgeon partners and Regent Surgical Health, has shifted from performing 30% to 70% of cases with enhanced clinical practice. The center’s success comes from the surgeon partners being focused, having aligned protocols, and both pre- and post-operative patient education.
A specialty that is anticipated to grow is spine procedures, with an increase of 10% by 2022. The Bone and Joint Institute of Tennessee Surgery Center, a state-of-the-art ASC in Franklin, Tennessee, is already seeing this growth. The center quickly expanded its orthopedic caseload to include outpatient spine procedures and recently completed its first with several others following.
Better Margins Through Efficiency
ASCs receive lower average reimbursement rates than HOPDs, but they generate profits through greater efficiency. Factors such as increasing patient volumes, lower OR turnover times, and lower operating expenses result in higher revenue and better overall margins.
Interested in learning more about successful ASC models? Contact Regent Surgical Health.