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Q:

Related Topics
MMA ASC Services
Physician Credentialing
Surgery Center Feasibility
Billing Facility/Office-based Surgery Fees
Surgery Center Certification
ASC-Endoscopy Center Revenue Codes
Our orthopaedic surgery practice performs a significant number of cases in an outpatient setting. How do we assess the feasibility of developing our own ambulatory surgical center?

A:

A feasibility study typically begins with an assessment of the regulatory requirements (varies by state) of establishing an ambulatory surgery center (ASC) in the context of your specific situation. Detailed capital and operating budgets for the ASC would be prepared to evaluate the financial feasibility of the ASC and to determine whether or not the project will meet the criteria as defined by your state. A feasibility study would include an analysis of your case volume to determine the transferability of those procedures to the ASC (based on a number of factors including type and complexity of the surgery and expected recovery time, payor mix, etc.) and the projected facility reimbursement applicable to such procedures. The operating cost for the ASC would be estimated to derive a "break-even" for the ASC which is then compared to the projected number of "shiftable" cases.
 

Ed Luke
Senior Associate

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