Larry D. Taylor, president and CEO of Birmingham, Ala.-based Practice Partners in Healthcare, shares how his practice measures outcomes in a value-based arena and the importance of maintaining a strong patient base.
Question: As healthcare transitions toward the value-based payment model, how is your practice measuring outcomes and what are the remaining challenges for physicians?
Mr. Larry Taylor: One of the first items to prepare for value-based payments is the ability for ASCs to segregate cost and be able to cost each case. This is part of the value proposition to demonstrate cost effective care. To cost case the center, personnel must be recording inventory and item costs that are utilized in each case. Additionally, cost per minute and the deployment of a standard set of algorithms is necessary to apply costs to specialties. This data is developed by CPT and individual physician. This allows for the development of information that is used for negotiations with payer engagement. When reviewing the analysis of the data all outliers must be reviewed and determine the effect on the average case and if these conditions can be remediated. Standard outcome measures from the ASC must be combined with clinical outcomes from the physician practice outcome data to encompass the necessary data. The clinical data is then compiled with financial data to assist in the evaluation of rates.
Q: How do you maintain and grow a strong patient base?
LT: Physician relations and physician satisfaction are key for a strong patient base. The source for every non-physician encounter is the physician referral; in fact, the only source in the healthcare continuum for patient encounters is the physician. At Practice Partners we are a physician-centric company that focuses upon the physician needs to assure the patient is number one. Assuring that the surgical team is prepared, upbeat, responsive, proactive and efficient is an essential step. High levels of communication where issues or questions arise can also assure that the team is prepared. Physicians also respond well to information that relates to each procedure, case costing, alternative solutions and sense of urgency produces positive results. The best business or patient base is the business you already have. Take care of your physicians by improved process that eliminates redundancy that does not affect quality care or safety. Be there early and be there late, make the center work for the physicians creating value and accessibility rather than limiting access.
Q: What are key business trends in your orthopedic practice?
LT: We continue to see greater migration of orthopedics cases in our centers from all subspecialties. In the ASC environment with lower cost, greater efficiency and ease of access patients are seeking value. Industry wide we are experiencing increased procedures related to total joints and complex spine procedures. With the advancement of minimally invasive techniques, implants and equipment that assist the surgeon in efficient deployment as well as advanced pain management to allow for safe and highly effective same-day surgery. These procedures are saving the healthcare system great cost and patients experience lower co-pay exposure as well.
Learn more from Mr. Taylor at the 24th Annual Meeting: The Business and Operations of ASCs in October 2017. Click here for more information.