Freestanding 100 ASC Roundtable - Thoughtful Conversation

Have you had a really good conversation that you thought about long after it was over? Last week at the Freestanding 100 Conference just such a conversation took place during the Ambulatory Surgery Centers (ASC) roundtable.

I opened the session with a quote by Regina Herzlinger, Harvard professor and accountant: “It is possible to make health care cheaper and better in this country, if we would give consumers more power, more information and more choice.”

Needless to say it was the beginning of a very lively discussion. I was inspired by the conversation and wanted to continue the discussion with more input from healthcare industry leaders.

Who is the customer?
Who is the ASC customer-the patient or the doctor? Actually, we discovered there isn’t just one easy answer. While surgeons typically inform patients where they are going to have surgery, more and more patients are shopping for the best deal, a sign of things to come. Maybe it’s time to acknowledge that we do in fact have multiple target markets and that we need to serve in both similar and different ways. Share your thoughts. Who is your customer - the patient, the doctor or both?

Unique Needs of Boomers
Boomers are starting to feel the impact of time – sagging skin, expanding waistlines and aching or no longer functioning body parts. Overall, their needs are shaped by age, lifestyle and general health. One way or another, boomers need your services. By considering the five broad categories of needs discussed—appearance, mobility, sight, general body function and hearing—you can easily identify which category presents the greatest opportunity for your center. Enhance your value proposition; focus on your markets’ needs.

Boomers
Is it a coincidence that high deductible plans are becoming commonplace at a time when the boomers need more care? Likely not. Payers have anticipated increased spending on the boomer generation for at least a decade. While the number of boomers poses a challenge for payers, this generation poses a significant market opportunity for healthcare providers and in particular, for physicians and outpatient providers. Did you know that payers, and in particular employers, spend more for physician and outpatient services than inpatient care? Whether or not you regard boomers as your customer, chances are they account for a significant portion of your revenue stream. What percentage of your customer base are Boomers?

Shopping for health care?
It may be hard to imagine a day when patients will shop for health care they same way they shop for consumer goods. However, most providers are already dealing with the effects of at least one consumer initiative–high deductible plans. Many patients insured by high deductible plans are underinsured and consequently, increase the financial risk of providing care. Patients rarely understand their benefits and most are caught of guard when their portion of the bill is thousands of dollars. Some providers have joked that the cost of care has shifted from the insurer to the provider, rather than from the insurer to the patient. It’s no laughing matter to those footing the bill. The consensus—there is significant need for more patient education about benefits and the cost of care. How do you see that need being addressed individually and/or by the industry?

Bolstering your top line
Assuming it is possible to offer better, cheaper care, the only question left is, “how?”

Minimally invasive procedures lower the threshold for intervention and enable more cases to be safely performed in an outpatient environment. ASCs that provide services previously only provided in an inpatient setting offer payers real savings. Examples mentioned included the lapband, hip arthroscopy and joint resurfacing procedure, but there are many more. Naturally, offering additional services will directly increase your top line and it can also help you negotiate better contracts for all services. Presenting a unique or new value proposition is a great way to open discussions with payers, including employers. Consider your market and think of ways to leverage that with payers.

Have ideas on offering better, cheaper care? Share them here.

Innovation = Reduced Costs (true, not always, but often)
Until recently, the health care industry has invested less than other industries in technology. The advances that have been made are not yet been widely adopted. Some companies, like mine, offer new methods to train staff and streamline operations others are offering Web-based scheduling and supply chain management tools. Some payers who are using technology to receive and auto-adjudicate claims have already seen drops in administrative costs. E-prescribing technology is being deployed to help providers choose the right drug at the lowest cost for both the patient and payer.

Ask yourself, how you can use technology to reduce your operating costs and bolster your revenue stream? Are you using your current technology to it’s fullest potential? Does your staff have the tools they need to get their job done well and do it efficiently? Have you implemented changes or innovations that have reduced your operating costs? What were they?

Enhancing the Work Environment
Innovation, shminnovation. Yes, we see it all the time. You are just trying to get the job done. It’s easy to lose sight of the big picture. Try to think of it another way: what would make your business a better place to work (translation = ultimately a better place for patient care)? Basically, all attendees agreed that payers and patients are demanding value. For example, friendly staff and an aesthetically pleasing center are expected. If that is the baseline expectation, in what ways and how have you begun addressing this issue (fostering a friendly, competent staff)?