Transcript ASCs – The Next Five Years Presented by: Scott Becker, Partner www.mcguirewoods.com

ASCs – The Next Five Years
Presented by:
Scott Becker, Partner
www.mcguirewoods.com
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ASCs - The Next Five Years
1) Overall, still a very good business with good
returns – Margins – 30 to 40% in successful
Centers
2) More need to plan projects with large margins of
safety
3) 25% of ASCs are owned in part by a
management company – Deutsche Bank
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ASCs – The Next Five Years
4) Several macro trends tend to be negative
a.
b.
c.
d.
Commercial payors consolidate
Commercial payor pressure on out of network
Less growth in truly independent doctors
Increased employment of physicians by hospitals
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ASCs – The Next Five Years
4) Several macro trends tend to be negative
e. More economic pressure on Federal government
f. Specialty Hospital Development faces legislative
challenges – ASCs should not allow physician owned
hospitals to “swing in wind”
g. Medicare reimbursement changes
i. Higher acuity good
ii. Lower acuity negative
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ASCs – The Next Five Years
5)
Greater pressure to be
a.
b.
c.
Good focused operator
Projects with great Margin of Safety
Some diversity
i.
ii.
iii.
iv.
d.
e.
f.
Payors
Doctors
Procedures
Suppliers
Build on strengths
15.1 Physicians per partnership – Deutsche Bank
Remember your mistakes
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ASCs – The Next Five Years
6) State Specific Challenges
a. Out of Network Investigations – New York – state
also attacking health plans
b. Self Referral Legislation – New Jersey
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ASCs – The Next Five Years
7) Specialty Specific Challenges and Issues
a. Ortho
b. GI
c. Ophthalmology
d. Pain
e. Spine
f. ENT
g. Urology
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ASCs – The Next Five Years
8)
Net Revenues per Case – VMG Health Intellimarker
Specialty
Net Revenue
ENT
$1,776
GI/Endosocpy
$825
General Surgery
$1,572
OB/GYN
$1,864
Ophthalmology
$1,276
Oral Surgery
$1,056
Orthopedics
$2,435
Pain Management
$915
Plastic Surgery
$1,548
Podiatry
$2,664
Urology
$1,802
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THE END
Document #5064429
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