Ambulatory Surgical Centers (ASCs) have emerged as a pivotal player in the realm of orthopaedic surgeries, offering numerous economic and operational advantages that are reshaping the landscape of healthcare delivery. The significant growth of outpatient spine surgeries in ASCs over the last decade underscores the appeal and benefits these centers offer to patients, physicians, and the healthcare industry as a whole.
One of the primary drivers of the shift towards ASCs is the substantial cost advantages they present compared to traditional hospital settings. Hospitals, renowned for their higher costs, often come with inflated price tags for orthopaedic surgeries due to their encompassing overhead expenses. These expenses encompass staffing costs, maintenance, and complex administrative systems, which invariably drive up the overall cost of procedures. In contrast, ASCs are designed to run more efficiently. They have streamlined processes, use resources more effectively, and have lower overhead costs. This means patients and healthcare providers can access orthopaedic surgeries that are more affordable.
Cost-Effectiveness:
- Hospitals have higher costs due to staffing, maintenance, and administrative systems.
- ASCs operate with lower overhead costs, making orthopaedic surgeries more affordable.
- Medicare data shows ASC procedures cost about half of what they do at Hospital Outpatient Departments (HOPDs).
Operational Efficiency:
- ASCs focus on a narrower range of procedures, allowing for specialized care and higher patient satisfaction.
- Smaller, focused teams provide personalized attention throughout treatment.
- Tailored technologies and schedules for specialities enhance efficiency.
A key differentiator between ASCs and Hospitals lies in the cost factors associated with the same procedures. Data from Medicare shows that procedures done at ASCs cost the program only 53% of the amount paid to a common orthopaedic procedure, costing Medicare $1,005 at ASCs compared to $2,098 at HOPDs. This difference can result in lower out-of-pocket costs for patients and potentially lower insurance rates.
Having doctors involved in and owning ASCs is another benefit. It gives them a sense of ownership and control, which often leads to more cost-effective and higher-quality care. Doctors who are invested in ASCs are more likely to focus on ways to save costs and improve the quality of care. This alignment of goals between doctors and the surgery center ultimately benefits patients.
Market Growth:
- ASCs perform over half of all U.S. outpatient surgeries.
- ASCs are projected to continue playing a pivotal role in healthcare.
The future of orthopaedic surgeries seems bright for ASCs, with projections showing significant growth in the market. ASCs currently perform more than half of all U.S. outpatient surgical procedures, and this share is expected to grow even more. The projected increase in outpatient procedures by around 15% by 2028 points to the growing popularity and effectiveness of ASCs in healthcare.
Kermal Erkan, chairman of the board at the American Surgery Center and CEO of United Medical, emphasizes the cost-saving potential of ASCs. For example, the average cost of gallbladder surgery at an ASc is $2,200, compared to $12,000 at a hospital. This substantial cost difference highlights the crucial role ASCs play in reducing healthcare costs without compromising on the quality of care.
In summary, ASCs offer clear and compelling advantages for orthopaedic surgeries. From significant cost savings to improved operational efficiency and personalized patient care, ASCs are reshaping the landscape of modern healthcare. As the industry continues to move towards value-based care, ASCs are poised to play a crucial role in the future of orthopaedic surgery.
Sources:
Ambulatory surgery center ownership models
The Cost of Orthopedic Surgery: Hospital vs. ASC
Ambulatory Surgery Centers Versus Hospital-based Outpatient Departments: What’s the Difference?
Ambulatory Surgery Centers Versus Hospital Outpatient Departments for Orthopaedic Surgeries
Ambulatory surgery centers compete with hospitals for outpatient dollars
