Are surgery centers profitable?

Not including the 12 new cardiovascular procedures approved by CMS this year). With many ASCs focusing on orthopedic services, standard-setting could significantly increase ASC volumes. As new CMS rules allow for more procedures to be performed in an outpatient setting, it is possible that by 2030, 90% of all surgeries completed in the United States will be performed on an outpatient basis. This potential growth, driven in large part by CMSs that incentivize the shift in surgical procedures from inpatient to outpatient settings, means that healthcare organizations (especially large health systems) continue to view investment in ASCs as a strategic move fundamental.

Here are some ideas to incorporate into ASC planning to take advantage of potential increasing levels of ASC business on the horizon. Hospitals have tried to isolate themselves from this trend by focusing on high-income procedures that can only be performed in an inpatient operating room. They have also been encouraged by increased reimbursement for outpatient procedures performed in the outpatient surgery department of a hospital. However, this favorable wage differential is steadily shrinking as CMS moves toward reimbursement structures that support site neutrality.

Health systems must incorporate a robust outpatient surgery strategy or see their profit margins diminish. Most ASCs need to reassess their facilities every 10 years to stay current and relevant with care delivery. The types and complexity of procedures offered in an ASC environment evolve so rapidly that when planning your ASC, you need to consider future flexibility to achieve additional growth. Plan for future volume increases by including easy access for later additions of electric and medical gas.

Remember to update interior finishes regularly to remain competitive with newer ASCs. To view or add a comment, log in To view or add a comment, log in. Or these types of imaging centers that radiologists can buy or dialysis centers for nephrologists fall somewhat in that second category. If your facility does not generate a reasonable profit, then the value of your facility will likely be determined based on your replacement costs.

If you sell to a minority interest, surgeons using the center, or a smaller company, your center will normally only be valued between three and five times EBITDA. I have two doctors who will remain anonymous, but we are going to talk about outpatient surgical centers as an investment and a place to practice. Obviously, we're trying to preserve some anonymity in this episode, but the real impetus behind this episode was trying to talk about outpatient surgical centers. Whether you want to sell part or all of your surgical center to a corporate, hospital, or medical partner, here are some of the variables used to set a fair price.

Ambulatory surgery (surgery performed on the same day that does not require hospitalization) is also increasingly possible due to advances in surgical techniques, sedation, and postoperative pain management, making it more accessible and convenient for patients. On the ophthalmology side, most surgery centers are quite cost-effective just because they perform such a high volume of surgeries and have a long history of having outpatient centers. D, an ophthalmologist, sent an email about an opportunity he had to invest in an Ambulatory Surgical Center ahead of schedule in his career. There are definitely some cases that can be done in a center that shouldn't be done in a center.

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Dán Luu
Dán Luu

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