In a presentation at the 18th Annual Ambulatory Surgery Centers Conference in Chicago, Larry Taylor, CEO of Practice Partners in Healthcare, discussed key industry trends for ASCs and the outlook for certain specialties.
Mr. Taylor began his presentation with some statistics to reflect current trends, including the following:
• There are approximately 5,795 hospitals in the market and approximately the same number of ASCs.
• The average number of outpatient surgeries for an ASC per year is 5,767.
• Approximately 35 percent of ASCs are multi-specialty.
• GI, ophthalmology, orthopedics and pain management make up 52 percent of the average case volume for an ASC.
Mr. Taylor analyzed a number of social trends, market trends and other forces to predict which specialties may see the most growth by 2020. One of the largest forces is that of baby boomers. "Beginning in January, 10,000 people per day will turn 65," said Mr. Taylor. He said ASCs will have to evaluate if they can operate under these conditions in terms of Medicare. "Approximately 35 percent of Americans over the age of 65 rely almost entirely on social security," said Mr. Taylor.
Mr. Taylor also said that patients 65 years and older have 6-7 times more medical visits per year than those under the age of 65. "The American population could be making 53 percent more physician visits by 2020 under this rate," said Mr. Taylor.
Mr. Taylor says this aging population will really drive where ASC cases go.
Physician supply and demand will also influence specialties. Currently, the country has about 800,000 active physicians, but new physicians roughly equal those that retire. "Generation X is seeing an easy entry into the hospital market," says Mr. Taylor. Declining reimbursement and a preference for work-life balance are spurring physician employment. "Forty percent of primary care physicians and 25 percent of specialists are currently hospital-employed," said Mr. Taylor. This statistic might make some ASCs ask where their surgical cases may come from in the next few years.
As for hard figures, Mr. Taylor said surgical cases could see a 42 percent increase in cardiothoracic cases by 2020. Orthopedics is slated to increase by approximately 28 percent and ophthalmology is expected to increase by 47 percent by 2020. GI has already grown by 19.4 percent in the Medicare market for ASCs from 2000-2007, making that service line primes for growth as well.
The reason for these upswings in service lines is mostly due to the aging population. For instance, Mr. Taylor said most ophthalmology consumption isn't until patients are at least 65 and 70 percent of cardiothoracic patients are 65 years old or higher.
5 Best Practices for Revenue Capture at Endoscopy ASCs
The Impact of Healthcare Reform on Interventional Pain Management
Mr. Taylor began his presentation with some statistics to reflect current trends, including the following:
• There are approximately 5,795 hospitals in the market and approximately the same number of ASCs.
• The average number of outpatient surgeries for an ASC per year is 5,767.
• Approximately 35 percent of ASCs are multi-specialty.
• GI, ophthalmology, orthopedics and pain management make up 52 percent of the average case volume for an ASC.
Mr. Taylor analyzed a number of social trends, market trends and other forces to predict which specialties may see the most growth by 2020. One of the largest forces is that of baby boomers. "Beginning in January, 10,000 people per day will turn 65," said Mr. Taylor. He said ASCs will have to evaluate if they can operate under these conditions in terms of Medicare. "Approximately 35 percent of Americans over the age of 65 rely almost entirely on social security," said Mr. Taylor.
Mr. Taylor also said that patients 65 years and older have 6-7 times more medical visits per year than those under the age of 65. "The American population could be making 53 percent more physician visits by 2020 under this rate," said Mr. Taylor.
Mr. Taylor says this aging population will really drive where ASC cases go.
Physician supply and demand will also influence specialties. Currently, the country has about 800,000 active physicians, but new physicians roughly equal those that retire. "Generation X is seeing an easy entry into the hospital market," says Mr. Taylor. Declining reimbursement and a preference for work-life balance are spurring physician employment. "Forty percent of primary care physicians and 25 percent of specialists are currently hospital-employed," said Mr. Taylor. This statistic might make some ASCs ask where their surgical cases may come from in the next few years.
As for hard figures, Mr. Taylor said surgical cases could see a 42 percent increase in cardiothoracic cases by 2020. Orthopedics is slated to increase by approximately 28 percent and ophthalmology is expected to increase by 47 percent by 2020. GI has already grown by 19.4 percent in the Medicare market for ASCs from 2000-2007, making that service line primes for growth as well.
The reason for these upswings in service lines is mostly due to the aging population. For instance, Mr. Taylor said most ophthalmology consumption isn't until patients are at least 65 and 70 percent of cardiothoracic patients are 65 years old or higher.
Related Articles on ASC Specialties:
Key Trends in Orthopedics and Spine in ASCs5 Best Practices for Revenue Capture at Endoscopy ASCs
The Impact of Healthcare Reform on Interventional Pain Management