Patients and Payers Cut Costs With ASCs
February 2018
By Ann Peters
Manager, Research & Analytics
The cost of medical procedures performed at ambulatory surgery
centers (ASCs) is generally lower than that of procedures performed at
hospital inpatient departments. Both the number and range of procedures
performed in ASCs has grown substantially in recent years, leading to
lower costs for both public and private payers, as well as patients. By
one estimate, consumers could save up to $5 billion if more care was
shifted to existing ASCs.
HIDA’s 2018 Ambulatory Surgery Center Market Report offers an
in-depth look at ASC market conditions, as well as factors affecting
demand and utilization. The following is a look at some of the key
trends and data points collected for this new report.
ASCs handle the majority of outpatient surgeries
Last year, ASCs handled approximately 58 percent of outpatient
surgeries, up from 41 percent in 2005. This figure will continue to
grow, with ASCs handling 60 percent of outpatient surgeries by 2020. At
the same time, more surgeries are shifting from inpatient to outpatient
settings. In 2005, 58 percent of surgeries were performed in an
outpatient setting, and this figure is expected to reach 64 percent by
2020.
ASCs to treat more surgeries of all types
The Centers for Medicare and Medicaid Services is focused on
paying the same amount for certain medical procedures, regardless of
setting. Currently, hospital outpatient departments are paid more than
ASCs for outpatient surgery. Beginning this year, hospitals will be paid
40% of the amount specified in the outpatient prospective payment
system for certain procedures that can be performed at an ASC or a
physician office.
Publicly-owned ASCs experience steady revenue growth
HIDA analysis contained in the report shows that publicly-owned ASCs’
revenue grew steadily between 2014 and 2016. These companies’
per-procedure revenue increased by 52 percent, on average, during this
period. Key drivers of this growth include surgical and anesthesia
advances that allow more complex procedures to be performed at ASCs.
Publicly-traded ASCs also have seen rising profits during this
period, though the share of their budget devoted to supplies is also
rising. With their experience and unique perspective, distributors can
bring a unique value to these fast-growing providers by offering supply
chain solutions.
While these are some of the key growth trends affecting market
conditions for ASCs, these providers also face a number of risks and
constraints. Certificate-of-need programs, quality reporting
requirements, and industry consolidation are among the (challenges, or
something else, for which these facilities need to account). For an
in-depth look at this rapidly changing healthcare segment, visit www.HIDA.org/MarketReports to purchase your copy of HIDA’s 2018 Ambulatory Surgery Center Market Report.
Published in: http://www.repertoiremag.com/patients-payers-cut-costs-with-ascs.html