Colorado hospital expects up to 70% decline in orthopedic revenue in 2022

Practice Management

Aspen (Colo.) Valley Hospital executives are predicting an up to 70 percent decrease in orthopedic revenue in 2022, which equates to about a $20 million hit to its bottom line, The Aspen Times reports.

About 37 percent of the hospital's revenue comes from orthopedics, followed by its emergency department (22.2 percent) and primary care (10.9 percent).

But in anticipation of orthopedic procedures shifting to the outpatient environment, Aspen Valley partnered with Steadman Clinic and the Steadman Philippon Research Institute to build a 65,000-square-foot surgery center in Basalt, Colo., which CEO David Ressler expects will attract patients from across the country.

The ASC, a joint venture between Steadman Clinic, Gainesville, Fla.-based Orthopedic Care Partners, Aspen Valley Hospital and Vail Health, will open in March. It features four operating rooms, a procedure room, a biologics lab, nine preoperative and postoperative rooms, and 14 recovery rooms. 

"When that surgery center generates profit ... we will receive 25 percent of our share of the profit," Mr. Ressler said at a Dec. 13 board meeting, according to The Aspen Times.

Aspen Valley plans to move 70 percent of its orthopedic cases to the ASC.

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