Declining reimbursements, staffing shortages and the increase in operating costs are three of the biggest threats ASCs are facing in 2024.
Here is how those problems are impacting ASCs:
Reimbursement struggles
Reimbursements have long been an uphill battle for ASCs.
Five ASC procedures from the top 10 CPT codes from 2023 are projected to experience a decline in reimbursements in 2024, according to a report from VMG Health.
"Procedure reimbursements have failed to keep up with inflation and do not reflect the increased work demands of physicians," Alyson Engle, MD, a pain medicine physician at Chicago-based Northwestern Medical Group, told Becker's. "Insurance company profits soar while physician salaries decline. Less physicians will be inclined to stay in the workforce as the economics do not make sense. This trend is unsustainable for our nation's health and will lead to lower quality care as physicians leave medicine."
Staffing challenges
Since the COVID-19 pandemic, healthcare has been no stranger to staffing issues. However, ASCs have to compete with hospitals for staff, adding an extra layer of challenges.
"I unfortunately feel like nursing and certified surgical technologist shortages will continue to disrupt the ASC industry in the future," Karen Sumida, RN, interim administrator of Surgery Center of Athens (Texas), told Becker's. "Many nurses that could retire during COVID-19 did and others left the field or took jobs that can be done remotely. Applicants for both positions are requiring higher salaries, and with the ASC industry getting lower reimbursements than hospitals, we can not compete with the rising salaries. Many RNs and CSTs are leaving the ASC setting and going to work at the hospitals to get a better salary. Staffing is and will continue to be a problem in the ASC setting."
Rising operating costs
The average percentage of operating revenue ASCs spent on paying employees was 21.3%, according to a report from VMG Health. The highest spenders paid 29% of their earnings to compensate staff.
Staffing isn't the only area ASCs are spending big.
"The biggest enemy [to ASCs] right now is the rising cost of everything," Amy Noble, practice administrator for the Center for Pain Control in Wyomissing, Pa., told Becker's. "From equipment to supplies to staffing, expenses continue to rise while reimbursements are stagnant."