Business Planning for Orthopedic and Spine Driven Centers

Jeff Leland, CEO of Blue Chip Surgical Center Partners gave a presentation titled "Business Planning for Orthopedic and Spine Centers" at the 9th Annual Becker's Orthopedic, Spine and Pain Management-Driven ASC Conference in Chicago on June 9, 2011. According to Mr. Leland, the key factors driving spine procedures to the outpatient setting are minimally invasive technology, developments in anesthesia and a shortage of spine surgeons in the country.

New spine surgery centers, either independent ASCs or joint ventures between surgeons and hospitals, are becoming more prevalent as specialty centers become more attractive to patients. Spine is also becoming more attractive to existing multi-specialty and orthopedic ASCs, because spine lends itself to a contracting advantage in today's healthcare environment.

The most common and profitable spine procedures currently being performed in ASCs are cervical fusions, lumbar fusions, discectomies and laminectomies. Some are also performing vertebroplasties and kyphoplasties; however, these procedures are expensive, and payors are increasingly less willing to cover them. In the future, outpatient spine may likely move toward more preventative care to eliminate downstream problems, according to Mr. Leland. To provide the highest level of care, surgery centers are beginning to recruit both spine surgeons and neurosurgeons to partner on outpatient procedures.

When creating a spine-focused ASC or bringing outpatient spine to an established center, it's important to begin out of network and move in slowly. Adding new surgical technology and spinal implants are expensive. Hospitals often hire implant distributors to manage implantable devices; however, these professionals may not be necessary in ASCs. Instead, ASC administrators should be aware of their payor mix and perform case-costing analyses to find inflated costs and work with the surgeons to bring them down. As new technology comes to the market, companies may begin to bypass insurance company coverage and go straight to the marketplace for private pay patients.

There are some spine surgeons who will never feel comfortable performing their cases in a surgery center. However, many spine surgeons are focused on productivity, patients and the quality of care, said Mr. Leland, and outpatient surgery centers can provide an environment for success.

Related Articles on Outpatient Spine:
Outpatient Spine: 6 Big Questions
5 Ways to Capitalize on Outpatient Spine Surgery

5 Tips for Negotiating Outpatient Spine Contracts

https://www.beckersorthopedicandspine.com/orthopedic-spine-practices-improving-profits/3498-5-wayst-to-capitalize-on-outpatient-spine-surgery

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