Some orthopedic surgeons say ASCs have significantly altered the technology and implant industry — a process that has accelerated during the pandemic.
Orthopedic surgeon Mark Kerner, MD, of Hampton Roads Orthopaedics Spine and Sports Medicine in Newport News, Va., spoke with Becker's Spine Review on how ASCs have disrupted the implant and technology industry.
Physicians traditionally have been relative allies to these industries — profiting off technological advances and implants regardless of the price, Dr. Kerner said. Hospitals needed to attract high-volume surgeons, and implants and technology were a means to achieve that.
With the growth of ASCs, however, where many physicians are owners, the push for implants and technology doesn't exist in the same capacity as hospitals.
"They are incentivized to put a premium on efficiency and rock-bottom implant costs and have little desire to pay for technology where classic techniques can be used without it," he said. "This puts the physician on the other side of the negotiating table from industry. This disrupts the sales paradigm that has built the implant industry and was formative to the careers of the sales force in it."
Larger and more resourced ASCs appealing to affluent patients can afford to pay for technology for its marketing value, but many others can't. Thus, these ASCs are using economical basic implants that suffice medically and allow for better profits.
"An industry that is conditioned to huge profit margins is going to face a race to the bottom for prices. Like any mature industry, economies of scale will begin to be meaningful," he said. "Only the larger and efficient will remain profitable at the new price points."