Six ASC leaders joined Becker's to share how the ASC industry shifted in 2024.
Editor's note: These responses were edited lightly for clarity and length.
Question: How did the ASC industry change in 2024? How did it affect your work?
Brent Ashby. CEO and administrator at Jankat Services (Pueblo, Colo.): I don't know that the industry really changed that much in 2024 compared to previous years. However, there appears to be more consolidation of the industry with fewer players looking to build and acquire facilities. Because of these pressures we felt compelled to combine two wholly physician-owned ASCs under a single organization this past year. I believe we will see more of that in the future.
David Fitzgerald. CEO of OrthoNY ((Albany, N.Y.): Total shoulders in the ASC have added another dimension to the ASCs. It has helped in discussion with implant vendors and has really helped define what is an ASC eligible patient. Small centers that can now do shoulders, have to learn how to deal with increased sterilization needs, etc.
Leasa Hermanson, RN. Administrator of Ambulatory Care Center (Vineland, N.J.): The biggest industry change in 2024 was the impact of the anesthesia shortage on ASCs — especially physician-owned centers. For the first time in 25 years, our center is forced to "pay to play" — in the large six figures. Obviously, this has impacted our entire program. Our center is located in the most economically depressed county in New Jersey, and we have always prided ourselves on taking care of everyone, regardless of payer. The refusal of the government and private insurance companies to reimburse fairly for essential services may, unfortunately, affect the cases we are able to do moving forward.
Sandra Jones. Founder and President of Ambulatory Strategies (Dade City, Fla.): Increased complexity to navigate regulations and roadblocks to comply with federal requirements calls for more planning and persistence. There is always something new. Administrators must concentrate on staffing and supply management, two very important areas for a well-run and profitable surgery center. As a result, we have more ASCs and smaller ASC management companies reaching out for help to achieve efficiency and regulatory compliance. Architects and construction companies recommend to physicians and hospitals starting plans for a new ASC to engage a company that can pave the way to efficient operational systems and achieve licensing, accreditation, and certification. Our relationship over the years with health systems has also resulted in planning and achieving hospital-physician collaboration in development of outpatient surgery. Our business has grown as a result.
Steve Peterson. Practice administrator of Wilmington (N.C.) Gastroenterology: The biggest change we have experienced is a continuation of the staffing issues that started in post-pandemic and continues today. Recruiting and retaining qualified staff in the current market conditions is difficult particularly in markets with large health systems offering sign-on bonuses and very flexible hours.
Chantell Preston. CEO and Founder of Preston Partners (Houston, Texas): The healthcare market is evolving rapidly, driven by significant advancements in technology. These innovations are enabling more surgical procedures to be safely and efficiently performed in ASCs. Since ASCs offer lower costs, shorter recovery times and improved patient convenience compared to traditional hospital settings, the demand for ASCs is growing, particularly for single-specialty facilities that focus on specific areas such as orthopedics/spine and cardiovascular procedures. Our workload has increased tremendously working with these organizations to develop state of the art, technologically advanced facilities that provide the highest level of patient care.