At the 12th Annual Spine, Orthopedic and Pain Management-Driven ASC Conference in Chicago on June 13th, Kenny Hancock, president and chief development officer of Meridian Surgical Partners, discussed the practical business implications of building an ASC.
Five of his key concepts are as follows:
1. Spine has migrated to outpatient procedures. According to Mr. Hancock, there is a predicted shift of 45 percent of spine procedures being moved to ASCs. The major shift is driven by technology, physician mindset and desire for more direct control and insurance acceptance.
2. The MIS approach is becoming widely accepted and preferred. New surgical implants, techniques and technology have paved the way for minimally invasive techniques that are preferred both by physicians and patients.
3. Developing a detailed business plan is instrumental in the success of an ASC. Mr. Hancock stressed detailed financial analysis through a complete examination of project scope, surgical case volume, reimbursement, possible partnerships, construction cost and equipment planning.
4. Real estate investment is of the utmost importance. Mr. Hancock expressed the importance of a real estate-based partnership. The partnership enables the availability of an inside expert on land purchase, site and utility fees, permits and return on the real estate investment.
5. ASCs do not come without challenges. Mr. Hancock stressed the seriousness on embarking on such a venture as well as inevitability of mishaps. The operational challenges range from implant costs to negotiations of fee schedules.
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