Physicians, executives and some of the biggest names in healthcare — such as Optum and even CMS — have begun piloting value-based payment systems. Given that the care model has been found to improve patient outcomes, lower costs and reduce burnout, many ASCs have set their sights on value-based care.
Value-based payment models have saved insurer Humana $8 billion in 2022, compounded by continually declining reimbursement rates. The implementation of value-based care could also alleviate financial challenges at ASCs, which may leave their leaders asking how to successfully adopt the payment system. However, according to DJ Hill, CEO at Raleigh, N.C.-based ASC management company Compass Surgical Partners, ASCs need to ensure they have a few critical bases covered first.
"Under every scenario of value-based care, running an efficient surgery center is critically important," Mr. Hill told Becker's. "Managing costs, supplies, doing the blocking, tackling — doing it in partnership with the surgeons is important. If you focus on operations first, the economics follow."
"Whether its price pressure, wage pressure, the lack of government increases on the Medicare fee schedule every year, or inflation on supplies, running the core business well is extraordinarily important."
Mr. Hill said running the day-to-day operations at an ASC is a critical first step.
"If you do that really well, then you have a lot of options," he said. "Then you can do all sorts of interesting things like bundles and employer direct, and other models people are talking about. If you're not doing those things well, everything else gets much more challenging."
That's where Compass Surgical Partners comes in.
"We partner exclusively with premiere healthcare systems in specific protected geographies, and we're over 250 centers, no failures with above-average margins," Mr. Hill said.
This success is evident, given that Compass has opened more than five venture ASCs in 2024 in partnership with Cincinnati-based Bon Secours Mercy Health and Jacksonville, Fla.-based Baptist Health. Given the growing interest in ASCs among healthcare executives, Mr. Hill said the company has more in store, in tandem with other health systems.
"When you think about the ongoing outpatient migration that's been happening, what we do is help our healthcare system partners figure out how to navigate the challenges associated with that well."