As ASCs grow in popularity amid the shift toward outpatient procedures, being intentional about specialty focus and ownership models is critical to achieving success."
Mitch Schwarzbach, a Denver-based healthcare consultant and former ASC administrator, joined Becker's to discuss the operations and success drivers of single-specialty and multispecialty ASCs.
"Financial success involves understanding specialties, case types and physician group compensation," he said.
Here are five key notes on the dynamics:
1. Single-specialty ASCs are typically owned by an affiliated clinic or physician group and often concentrate on areas like gastroenterology or ophthalmology. These centers measure their success by the volume of procedures performed, according to Mr. Schwarzbach.
"Single-specialty success is all about consistency: doing the same thing repeatedly, following protocols for patient care, using standardized equipment and having well-defined staff responsibilities," he said. "This approach leads to better patient outcomes, physician satisfaction and staff satisfaction."
2. In contrast, multispecialty ASCs often focus on orthopedic and spine cases along with other specialties, with an increasing number of surgeons establishing their own facilities to gain greater financial control.
"With that, more [surgeons] across the board are kind of breaking loose, opening up their own places. They're following the money," he said. "Groups with a good financial leader, someone who understands the game, realize that if they do it on their own — not only will the clinic, physician group, or orthopedic group make more money, but it will also give them the autonomy to do things their way."
3. Physicians in multispecialty ASCs play a pivotal role in driving financial decisions, negotiating prices for procedures, and overseeing patient care from start to finish. These centers can face challenges, however, particularly in terms of ownership structure.
4. When an ASC is 100% physician-owned with equal ownership stakes, conflicts can arise based on the volume of procedures performed by different specialties.
"You need a clear understanding at the beginning of what the needs and goals are," he said. "If you're going to run a place to maximize financial wealth, you have to think about maximizing shareholder wealth."
5. For multispecialty ASCs looking to optimize financial outcomes, it is beneficial for orthopedists and spine specialists to "stick together," as referrals from other specialties such as ENT, urology, OB/GYN or pain management are less common, he said. Hospitals typically remain a source of these referrals, fostering a mutually beneficial relationship, as long as the ASCs do not draw away too many resources from hospital systems.