In a panel discussion at 9th Annual Orthopedic, Spine and Pain Management-Driven ASC Conference in Chicago on June 10, Kenny Hancock, president and CEO, Meridian Surgery Centers, Larry Taylor, president and CEO, Practice Partners in Healthcare, and Jeff Leland, CEO, Blue Chip Surgical Center Partners, shared their thoughts on the best ideas for orthopedic, spine and pain management-driven ASCs. The panel was moderated by Scott Becker, JD, CPA, partner, McGuireWoods.
Mr. Leland noted that spine is currently one of the most profitable specialties in the outpatient setting. While not all spine cases can be performed in an ASC, certain appropriate ones can, representing a huge opportunity to centers that currently don't offer this specialty.
Mr. Leland explained that his company traditionally launches spine programs out-of-network and then works to move in-network in a "reasonable" amount of time, adding that contracting involves helping health plans understand how much ASC-based spine surgery can save them. He says that his centers are typically 65 percent in-network after 18 months.
Mr. Taylor only expects the number of spine cases performed on an outpatient basis to increase as better technology allows more complex spine cases to move out of the hospital. He recommended surgery center leaders keep an eye out for new technology to ensure that once they expand to spine they can offer the same cutting-edge techniques as competing hospitals. However, he cautioned centers need to ensure they have the OR time for these sometimes lengthy cases as well as the "right doc at the right time" to launch a successful program.
Mr. Leland agreed that more complex cases are making their way to the ASC . "Laminectomy, discectomy and single- level ACDF are our bread and butter, though we're starting to see more lumbar cases," he said.
For centers that offer spine, pain management is a complementary specialty these centers should think about offering, says Mr. Hancock.
Beyond spine, Mr. Hancock said he expects more joint replacements to also move to the outpatient setting, representing another area centers could grow their cases and profits.
One threat facing orthopedic, spine and pain centers is the growing alliance hospitals are attempting to create with orthopedic and spine surgeons, said Mr. Leland. He believes this is not necessarily to attract their ancillary services but rather to maintain trauma coverage for their ERs. Employment of orthopedic, spine and pain physicians poses as significant threat to ASCs, but Mr. Becker noted that at this time many of these physicians are not seriously interested in employment.
Mr. Leland added he worries about growing questions around the efficacy of fusion, nothing that BCBS of North Carolina recent announced it would not pay for lumbar fusions in certain situations.
Mr. Leland noted that spine is currently one of the most profitable specialties in the outpatient setting. While not all spine cases can be performed in an ASC, certain appropriate ones can, representing a huge opportunity to centers that currently don't offer this specialty.
Mr. Leland explained that his company traditionally launches spine programs out-of-network and then works to move in-network in a "reasonable" amount of time, adding that contracting involves helping health plans understand how much ASC-based spine surgery can save them. He says that his centers are typically 65 percent in-network after 18 months.
Mr. Taylor only expects the number of spine cases performed on an outpatient basis to increase as better technology allows more complex spine cases to move out of the hospital. He recommended surgery center leaders keep an eye out for new technology to ensure that once they expand to spine they can offer the same cutting-edge techniques as competing hospitals. However, he cautioned centers need to ensure they have the OR time for these sometimes lengthy cases as well as the "right doc at the right time" to launch a successful program.
Mr. Leland agreed that more complex cases are making their way to the ASC . "Laminectomy, discectomy and single- level ACDF are our bread and butter, though we're starting to see more lumbar cases," he said.
For centers that offer spine, pain management is a complementary specialty these centers should think about offering, says Mr. Hancock.
Beyond spine, Mr. Hancock said he expects more joint replacements to also move to the outpatient setting, representing another area centers could grow their cases and profits.
One threat facing orthopedic, spine and pain centers is the growing alliance hospitals are attempting to create with orthopedic and spine surgeons, said Mr. Leland. He believes this is not necessarily to attract their ancillary services but rather to maintain trauma coverage for their ERs. Employment of orthopedic, spine and pain physicians poses as significant threat to ASCs, but Mr. Becker noted that at this time many of these physicians are not seriously interested in employment.
Mr. Leland added he worries about growing questions around the efficacy of fusion, nothing that BCBS of North Carolina recent announced it would not pay for lumbar fusions in certain situations.