ASCs' answer to consolidation

ASCs are consolidating, albeit at a slower rate than physician groups or hospitals, and some leaders are looking for different solutions that don't involve rescinding independence. 

Joe Peluso, administrator at Aestique Surgical Center in Greensburg, Pa., joined Becker's to discuss his idea for an alternative to consolidation – an "independent management consortium."

The consortium would allow "12 to 15 ASCs to come together and create economies of scale, including better access to data, that will enable ASCs to deliver cost-effective services to their local communities while maintaining autonomy."

The consortium would employ a management company, which would charge a fee, but would differ from other models because the company wouldn't have an ownership interest, he said. The ASC owners would have input into the operations, but would not have to manage the minutiae of day-to-day operations. 

"The physician partners/owners would be responsible for performing quality procedures and enjoy a better work-life balance," he said. "This type of management consortium model will help support ASCs independence while balancing operational costs with decreasing payment rates as well as negotiating better payer contracts for the managed entities."

The appropriate management team would drive success, he added. The team would ensure the ASCs operations run, recruit staff, maintain accreditation and mentor staff. 

Mr. Peluso predicted that many physicians, being currently employed, may break away to become independent. This model will allow them to invest in an ASC without as much administrative burden. 

"In an independent ASC, there's more of a doctor-patient relationship and more emphasis on the patient experience," he said. "Independent physicians might come in early or stay late to see a patient because they have more at stake. I think you'll see better quality care, better access, and lower costs with independent ASCs."

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