- ASCs can easily expand capacity.
By extending operating hours beyond their typical schedule, ASCs can significantly increase surgical capacity without a substantial capital outlay. Generally speaking, ASCs are nimble organizations, able to quickly pivot to accommodate new opportunities and operate more efficiently and cost-effectively than hospitals.
- Surgeons and payers are embracing ASCs.
Many hospital-based surgeons who received emergency credentials to operate at ASCs are now exploring opportunities to continue their affiliation with ASCs. These recruitment opportunities could strain ASC-hospital relationships and should be handled with care. We also expect ASC-friendly commercial payers will take an even more proactive approach to safely migrating procedures to ASCs. Conversions of HOPDs to ASCs were on the rise before the pandemic, and we expect this trend to continue.
- CMS will greenlight more ASC procedures based on new evidence of safety, efficiency and cost-effectiveness.
The Centers for Medicare & Medicaid Services (CMS), through its 1135 waiver authority, recently implemented the "Hospital Without Walls" policy. The policy allows ASCs to contract with healthcare systems to provide hospital services or enroll and bill as hospitals during the emergency declaration. Avanza anticipates this move will produce further evidence that ASCs can safely perform higher-acuity Medicare cases. In addition, CMS’s recent willingness to fast-track telehealth and other patient-centered solutions could be a sign it will expand its list of ASC-payable codes/procedures in its next annual update.
From Avanza’s perspective, ASCs are well positioned for a rapid recovery and to be a model for providing high-quality, low-cost care. Consumer- and payer-driven trends favor ASCs, and hospitals are recognizing they need an ASC in their portfolio to accommodate patients and payers looking for a lower acuity, less expensive option for outpatient surgery. This was true before COVID-19 proved our point.
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