As ASCs become increasingly appealing to market players, some healthcare leaders who are not as familiar with ASC practices may be looking to open outpatient centers.
Becker's connected with Daniel Chan, MD, chief of orthopedic surgery and sports medicine and medical director of orthopedic trauma at Memorial Healthcare and Medical Director of Joint Replacement at Cypress Creek Outpatient Surgical Center in Fort Lauderdale, Fla., to gather expert advice for those wishing to break into the ASC sector.
Note: This response has been edited lightly for length and clarity.
Question: What advice would you give someone who wants to open their own ASC?
Dr. Daniel Chan: There are many factors to consider when opening a new ASC. Having a solid understanding of the local landscape in terms of patient demographics, potential hospital and ASC competitors, payer mix, and surgeon workforce is critical. Significant barriers remain to opening a successful ASC from the ground up, and apart from initial build-out costs, securing top-quality staff and especially favorable payer contracts remain challenging.
Ideally, there will already be a core of committed physicians who are ready to bring high-margin cases immediately to the new ASC and are already comfortable with high volume outpatient surgery in their selected subspecialties.
Finally, selecting the appropriate management/investment partner will likely be the single most important factor in the success of the ASC. The management partner will dictate the culture of the ASC, drive physician engagement and recruitment, facilitate marketing efforts, help procure favorable insurance and vendor contracts, and maximize operational efficiencies.