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Why Do ASCs Fail? - August 2015 - Subscribe to Outpatient Surgery Magazine

Outpatient Surgery Magazine, providing current information on Surgical Services, Surgical Facility Administration, Outpatient Surgery News and Trends, OR Excellence and more.

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No one knows exactly how many centers have gone under because they overbuilt, over- equipped or overstaffed, but it's a common trap. "I've looked at hundreds and hundreds of surgery centers," says Mr. Péo. "People say, I've only got a thousand cases right now, but if I build this surgery center, we'll immediately be up to 3,000 or 4,000. They build too big for the case volume they have and the overhead eats them up. They're equipped too big, staffed too big, paying rent on something too big, and they never really get out from underneath that." Cautious, realistic planning is essential, says Mr. Zasa: "Measure twice, cut once. Make realistic projections based on the actual cases that physicians do, and then discount those down." You should also be looking at each physician's payer mix, and what types of cases he is doing, says Mr. Péo. Then kick out the cases that aren't typically done in a surgery center, or that aren't reimbursed well enough or that are typically done in an office. Then whittle that number down to an even more conservative estimate and build based on those numbers. And if some surgeons are saying they're not interested in buying into the center, but that they'll bring their cases? "Don't count on 3 9 A U G U S T 2 0 1 5 | O U T P A T I E N TS U R G E R Y. N E T z TOO OPTIMISTIC? Overbuilding can result in overhead that eats ASCs alive.

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