AS I SEE IT
Going Forward Using economic forecasting to determine next steps for your ASC. BY KALIN MIERAS
During challenging times, it is always a good idea to be on the lookout for new ways to expand the offer- ings at your ASC, such
as adding new physicians or creating a new service line. One of the most im- portant considerations is the construc- tion of an economic forecast, or projec- tion, to determine what a new service line addition could mean for your facil- ity and how it could impact your ASC’s bottom line.
Getting Started
The forecasting process typically be- gins with an assessment of the new service line volume produced by vari- ous physicians. An initiative to add a new physician begins by determining how many cases the physician cur- rently
performs at other facilities.
Verify these numbers by asking for the physician’s surgery log from the previous year. This information, gath- ered through email or a face-to-face meeting, helps verify how many cases this physician could feasibly perform safely at your ASC. After gathering the physician case
volume information and payer mix, it is time to assess your facility’s con- tracts. During this investigation, work directly with your ASC’s adminis- trator or business office manager to make sure that the reimbursement of the CPT codes that you are looking to bring to the facility are currently cov- ered in the contract. If not, decide if the new service line will require con- tract renegotiation. Examining your ASC’s current contracts will make es- timating revenue based on reimburse- ment rates and payer mix easier. Next, gather the cost of the sup- plies required by the physician for
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The exercise of forecasting remains one of the most conclusive and economically sound ways to determine if adding a new service line extension is right for the patients, staff and physicians in your ASC.”
—Kalin Mieras, Nueterra
the new service line. Typically, a list of these supplies can be obtained from a physician preference card. Then, check with your ASC’s materi- als manager to determine pricing for these items. Equipment needs can be obtained from the physician as well. Compare this list to equipment cur- rently at your facility and determine what equipment needs to be procured. Often, equipment cost projec- tions for one or two specialties are not drastically different from those required by other complementary or related specialties. This can be an op- portunity to engage other physicians who could perform similar cases and, potentially, bring more revenue into your facility without adding signifi- cant additional costs.
ASC FOCUS JULY 2013 Looking Deeper
While things can look good on paper, take the time to assess if the physi- cian you are looking to bring on board meshes well with your staff and your facility’s values. One way to do this is by borrowing equipment for the doctor to use and creating a trial run for the new service line, the doctor and cur- rent staff before making an economic outlay on new equipment. If you find a good fit, then proceed by exploring any ancillary benefits of the proposed service line expansion. For example, could a new service line be implement- ed that employs similar equipment and uses complementary clinical skill sets? Beyond basic equipment costs, don’t
forget to consider those costs incurred through staffing and hours. Based on
The advice and opinions expressed in this article are those of the author and do not represent official Ambulatory Surgery Center Association policy or opinion.
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