ASCs have long struggled to secure adequate reimbursements.
Matt Kraemer, administrator of Northern Arizona Healthcare in Flagstaff, joined Becker's to discuss how this issue continues to be the biggest threat to ASC growth.
Question: What's the biggest threat to ASC growth right now?
Editor's note: This response was edited lightly for clarity and length.
Matt Kraemer: The biggest threat to ASC growth currently continues to be reductions in reimbursement that creates a difficult situation for the ASC to accommodate certain cases. Many times the operational costs to perform a case outweigh the reimbursement for that case. Rising costs of implants and medical supplies, staff labor and non-medical supplies continue to increase with the economic inflation associated with doing business, however, the reimbursement of these cases continue to fall. Many patients and providers prefer to have their procedures and surgeries performed in the ASC setting due to an enhanced experience, increased ease, faster operating room turnovers and reduced cost to the patient. Therefore, the ASC has to balance the dichotomy of maintaining a financially sustainable business, while accommodating providers and patients in an effort to grow their volumes.