It has been 21 months since ASCs were asked to halt elective procedures to prevent the spread of COVID-19 in March 2020 and focus resources on treating patients with the virus. Yet COVID-19 continues to affect surgery center operations and strategy in a significant way, and the aftershocks will continue into 2022.
Seven observations based on conversations with administrators across the U.S. and featured on the Becker's Ambulatory Surgery Centers Podcast:
1. Shortages related to the COVID-19 pandemic elevated the cost of supplies and required administrators to develop multiple procurement channels.
2. Staffing shortages across the healthcare industry as the pandemic wears on have boosted staff salaries and turnover rates. ASCs found it challenging to recruit and retain staff when competing hospitals and traveling organizations offer large sign-on bonuses.
3. COVID-19 cases are spiking again in several states and hospitals are limiting elective surgeries. ASCs have been able to stay operational in most areas, but administrators are keeping an eye on case counts to gauge whether they'll need to temporarily limit surgeries as well and divert resources to treat COVID-19 patients.
4. The federal COVID-19 vaccination mandate for healthcare workers remains in limbo, and if it's reinstated next year, some ASC executives worry they'll see staff attrition if team members decide to leave instead of receiving the shot.
5. Uncertainty about how COVID-19 variants will evolve and financial stress caused by the pandemic is driving more independent ASCs and physician groups to join large chains, merge with other organizations and accept private equity investments.
6. ASCs were forced to work more closely with local hospitals during the pandemic, forging friendlier relationships that could lead to more alignments and joint ventures.
7. Conversely, surgeons moved high-acuity procedures to ASCs in the early days of the pandemic when hospitals limited elective surgeries and now more are confident performing total joint, spine and outpatient heart procedures in surgery centers. The high-acuity procedures are among the highest paying for hospitals, causing competition between providers in some markets.
Stay up to date with big issues and trends in the ASC industry with the "Becker's ASC Podcast." Download here.