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Ambulatory Surgery Centers
             in the
    United States of America
            David Shapiro, MD
National Conference on Ambulatory Surgery
                Bangalore
Dr. David Shapiro
 Physician
 Anesthesiologist (Specialization in Outpatient Anesthesia)

 Florida Society of ASCs (FSASC) : Board Member
 ASC Association (ASCA) : Chairman of the Board

 ASC Quality Collaboration : Co -Chair
 AAAHC : Surveyor
 AORN ASC Administrator Course : Faculty

 Certified Administrator Surgery Center (CASC) by the Board of Ambulatory Surgery
  Certification
 Certified in Health Care Quality and Management (CHCQM) by the American Board of
  Quality Assurance & Utilization Review Physicians
 Certified in Healthcare Compliance (CHC) by the American Hospital Association
 Certified Professional in Healthcare Risk Management (CPHRM) by the Health Care
  Compliance Board
 Licensed in Healthcare Risk Management (LHRM) by the State of Florida
History of ASCs in the United States
Opened February 12, 1970 in Phoenix, Arizona
Founded by
     Wally Reed, MD
     John Ford, MD

Named “Surgicenter”
Originally 4 ORs
Now 6 ORs, 4 Endoscopy Suites
First sketch of Surgicenter
made on the back of a tent
table ad at Smuggler’s Inn
in Chicago in 1968.
John L. Ford, MD and Wally Reed, MD in the OR on Surgicenter’s opening day, February 12, 1970.
ASC Timeline
Wallace Reed, MD, and John
Ford, MD, commit their idea for
a freestanding ambulatory
surgery facility to paper for the
first time and develop
objectives for the facility. They                    The Society of Freestanding
begin collecting endorsements                        Ambulatory Surgical Care
from the governmental bodies                         (ASCA’s original name) is
and members of the health                            incorporated during an ASC
care community to obtain                             seminar conducted in
financing for the project.                           Phoenix, Arizona.

                                     1970                                          1975-1976
           1968                                                1974
                         Reed and Ford’s idea becomes                       Rapid growth. A total of 42
                         reality when on February 12                        surgery centers are in
                         Surgicenter, the nation’s first                    operation in the US by 1975
                         freestanding ambulatory                            and an additional 25
                         surgery facility, opens for                        facilities open in 1976.
                         business. Five physicians
                         perform five procedures at the
                         facility that day, four requiring
                         general anesthesia.
ASC Timeline

The industry continues to
grow, with the number of
ASCs reaching triple digits.
ASCA and others join together                  Medicare modifies the ASC
to form the Accreditation                      list to use specific CPT codes
Association for Ambulatory                     and expands the list to
Health Care (AAAHC).                           include 1,535 procedures.

                                 1982                                             1988
          1979                                           1987
                      Medicare approves payment                         The number of ASCs in the
                      to ASCs for approximately 200                     US reaches 1,000. Using the
                      procedures, which are placed                      information from a 1986
                      in one of four payment groups                     cost survey of ASCs,
                      with payment rates between                        Medicare implements a new
                      $231 and $336, based upon a                       payment system, which
                      cost survey of 40 ASCs.                           remains the basis for ASC
                                                                        payments today.
ASC Timeline
ASCs go international when
the International Association
for Ambulatory Surgery                                        More than 5,300 ASCs exist
(IAAS) is founded during the                                  in the US today, performing
1st International Congress on                                 23 million surgeries
Ambulatory Surgery in                                         annually. Medicare has
Brussels. Medicare expands                                    granted approval for ASCs
the ASC list to cover more                                    to perform more than
than 2,000 procedures.                                        3,500 procedures.

                                        2002
          1995                                                          2011
                            Seventy-eight individuals earn
                            the CASC credential, the first-
                            ever ASC-specific credential,
                            establishing the ASC
                            administrator as a separate
                            and distinct career from other
                            health care management and
                            clinical positions.
Number of ASCs Per State
Number of ASCs Per Capita (Top Ten)
                                      ASCs per
  State       Population    ASCs
                                   100,000 People
Maryland     5,773,552.00   354         6.13
Wyoming        563,626.00    19         3.37
Washington   6,724,540.00   220         3.27
Idaho        1,567,582.00    51         3.25
Georgia      9,687,653.00   287         2.96
Delaware       897,934.00    24         2.67
New Jersey   8,791,894.00   233         2.65
Nebraska     1,826,341.00    47         2.57
Arizona      6,392,017.00   152         2.38
Tennessee    6,346,105.00   149         2.35
Surgical Trends
Surgical Trends
Specialties Served in ASCs by Claims
                          2,000             1,971,000        1,802,000
                                              31.1%            28.4%
                          1,800

                          1,600                                                         1,384,000
                                                                                          21.8%
                          1,400
In Thousands of Dollars




                          1,200

                          1,000

                           800
                                                                     508,000
                           600                                        8.0%
                                  278,000
                           400     4.4%                                                                     209,000
                                              76,000                           74,000                        3.3%
                           200                 1.2% 14,000                      1.2%                3,000             23,000
                                                     0.2%                                           0.0%               0.4%
                             0
Specialties Served in ASCs by Reimbursement
              $1,400                                         $1,416
                                                             42.4%

              $1,200


              $1,000
In Millions of Dollars




                         $800          $627
                                       18.8%

                         $600                                  $463           $407
                                                               13.9%          12.2%

                         $400

                                $120                                                         $134
                         $200   3.6%           $68                     $59                   4.0%
                                                                                                    $30
                                               2.0%   $15              1.8%            $1           0.9%
                                                      0.4%                            0.0%
                           $0
ASC Ownership
                       Corp-Hosp-Phys,
                                                     Corporate, 6%
                             2%                                              Hospital, 2%

                        Hosp-Phys, 17%

           Corp-Phys, 8%




                                                                       Physician, 65%




*Note: The Corporate-Hospital category had 0% ownership in the survey results.
ASC Ownership Trends
                   Physician        Other
          2009       92%             8%
          2008       90%             10%
          2007       91%             9%
          2006       91%             9%
          2005       91%             9%
          2004       90%             10%

                 2009   2008   2007 2006 2005 2004
  PHYSICIAN      62%    63%    61%    61%   63%   61%
  CORPORATE      6%     7%     7%      7%   5%    7%
   HOSPITAL      2%     2%     2%      3%   3%    3%
  CORP-PHYS      9%     10%    10%    11%   10%   11%
  CORP-HOSP      0%     0%     0%      0%   0%    0%
  HOSP-PHYS      17%    16%    17%    16%   16%   16%
CORP-HOSP-PHYS   3%     2%     2%      3%   2%    2%
ASC Regulation

• Federal Regulation
    Center for Medicare & Medicaid Services (CMS)


• State Regulation
    Various State Health Department and/or Agencies


• Local Regulation
    Primarily Building and Fire Code Compliance
      Enforcement
CMS: Definition of an ASC


Effective May 18, 2009 -
 “means any distinct entity that operates
  exclusively for the purpose of providing
  surgical services to patients not requiring
  hospitalization and in which the expected
  duration of services would not exceed 24 hours
  following an admission.”

                            42 CFR 416.2 DEFINITIONS
CMS
• Defines ASCs in Federal Law
• Determines Payment Policies
  – Allowable Procedures
  – Applicable Rates
  – Annual Updates
• Determines ASC’s Participation in Federal Programs
  – Conditions of Coverage
     -Infection Control Checklist

• Administer Quality Reporting Programs
ASC Accreditation

ASCs are Accredited by 4 different Organizations:
   Accreditation Association for Ambulatory Health Care (~3,010)
   Joint Commission (~637)
   American Association for Accreditation of Ambulatory Surgical
    Facilities
   American Osteopathic Association


As of Spring 2011: Over 70% of ASC facilities in the U.S.
  are accredited by one of these four organizations
Top Ten Procedures by Volume

                   HCPCS    2010
    Specialty                               Short Descriptor
                   Code    Volume
Ophthalmology      66984   1,123,252   Cataract surg w/iol 1 stage
Gastrointestinal   43239    516,603    Upper gi endoscopy biopsy
Gastrointestinal   45380    358,733    Colonoscopy and biopsy
Gastrointestinal   45385    275,898    Lesion removal colonoscopy
Gastrointestinal   45378    271,762    Diagnostic colonoscopy
Ophthalmology      66821    256,749    After cataract laser surgery
Pain Management    64483    245,274    Inj foramen epidural l/s
Pain Management    62311    229,492    Inject spine l/s (cd)
Pain Management    64494    191,097    Inj paravertebral facet joint
Pain Management    64484    128,510    Inj foramen epidural add-on
Reimbursement: Most Highly Paid Procedures

  HCPCS                                        Final CY 2011
                  Short Descriptor
  Code                                         ASC Payment

   69930   Implant cochlear device              $29,056.15
   33249   Implant pacemaker leads              $25,360.04
   33240   Insert pulse generator               $22,212.75
   64568   Neurostimulator implantation         $21,333.84
   61886   Placement cr. neurostimulator        $17,849.58
   61885   Insertion /redo neurostimulator      $13,816.04
   63685   Insertion/redo spinal stimulator     $13,816.04
   64590   Insertion/redo gastric stimulator    $13,816.04
   62361   Implant spine infusion pump          $12,221.29
   62362   Implant spine infusion pump          $12,221.29
Operational Data
    ASCA Outcomes Monitoring Project
Business Operations (#4)
   Net Charges
   Days in A/R Outstanding
   Paid Clinical Non-Physician Hours

Clinical Operations (#19)
   On Time Rate
   Operating Room Time
   Cancellation Rate

Clinical Outcomes (#19)
   Cardiac/Respiratory Arrest
   Nausea / Vomiting
   Retained Foreign Object
ASC Quality Collaboration

• Funded by ASCA & ASC companies
• Outcomes reporting
• Outcomes measure development
• Sharing best practices
• Clinical studies
• Promoting transparency
Quality Data Reporting
                 Six NQF Endorsed Measures

• Patient Burn

• Patient Fall

• Wrong Site, Side, Patient, Procedure or Implant

• Hospital Transfer / Admission

• Prophylactic Intravenous Antibiotic Timing

• Appropriate Method of Hair Removal
Current Trends
        Physician Employment                               MDs per ASC
70                                             70
60                                             60
50                                             50
40                                             40
30                                             30
20                                             20
10                                             10
 0                                              0
     2002 2003 2004 2005 2006 2007 2008 2009        1990   1995   2000   2005   2010E

            Unemployment                              High Deductible Plans
10                                             30
 9
 8                                             25
 7                                             20
 6
 5                                             15
 4
 3                                             10
 2                                             5
 1
 0                                             0
     2005   2007   2009   2011   2013   2015        2006   2007   2008   2009    2010
Impact
                                    Growth in                                                           Growth in
                                 Outpatient Surgery                                                   Number of ASCs
                 12                                                                          12
Year-over-Year % Change




                                                                   Year-over-Year % Change
                                                                                             10
                          8

                                                                                             8
                          4
                                                                                             6
                          0
                                                                                             4

                     -4
                                                                                             2

                     -8                                                                      0
                              1998 2000 2002 2004 2006 2008 2010                                  1998 2000 2002 2004 2006 2008 2010
ASC Future
ASCs: The Innovative Solution for Health Care

                    Access
                  Convenience
          Provision of Critical Services

                      Cost
                   Efficiency
                 Transparency

                    Quality
               Clinical Outcomes
              Patient Satisfaction
Ambulatory Surgery Centers
             in the
    United States of America
            David Shapiro, MD
National Conference on Ambulatory Surgery
                Bangalore

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5 david shapiro-ambulatory-surgery-centers-in-usa_ncas_2011

  • 1. Ambulatory Surgery Centers in the United States of America David Shapiro, MD National Conference on Ambulatory Surgery Bangalore
  • 2. Dr. David Shapiro  Physician  Anesthesiologist (Specialization in Outpatient Anesthesia)  Florida Society of ASCs (FSASC) : Board Member  ASC Association (ASCA) : Chairman of the Board  ASC Quality Collaboration : Co -Chair  AAAHC : Surveyor  AORN ASC Administrator Course : Faculty  Certified Administrator Surgery Center (CASC) by the Board of Ambulatory Surgery Certification  Certified in Health Care Quality and Management (CHCQM) by the American Board of Quality Assurance & Utilization Review Physicians  Certified in Healthcare Compliance (CHC) by the American Hospital Association  Certified Professional in Healthcare Risk Management (CPHRM) by the Health Care Compliance Board  Licensed in Healthcare Risk Management (LHRM) by the State of Florida
  • 3. History of ASCs in the United States Opened February 12, 1970 in Phoenix, Arizona Founded by Wally Reed, MD John Ford, MD Named “Surgicenter” Originally 4 ORs Now 6 ORs, 4 Endoscopy Suites
  • 4. First sketch of Surgicenter made on the back of a tent table ad at Smuggler’s Inn in Chicago in 1968.
  • 5. John L. Ford, MD and Wally Reed, MD in the OR on Surgicenter’s opening day, February 12, 1970.
  • 6.
  • 7. ASC Timeline Wallace Reed, MD, and John Ford, MD, commit their idea for a freestanding ambulatory surgery facility to paper for the first time and develop objectives for the facility. They The Society of Freestanding begin collecting endorsements Ambulatory Surgical Care from the governmental bodies (ASCA’s original name) is and members of the health incorporated during an ASC care community to obtain seminar conducted in financing for the project. Phoenix, Arizona. 1970 1975-1976 1968 1974 Reed and Ford’s idea becomes Rapid growth. A total of 42 reality when on February 12 surgery centers are in Surgicenter, the nation’s first operation in the US by 1975 freestanding ambulatory and an additional 25 surgery facility, opens for facilities open in 1976. business. Five physicians perform five procedures at the facility that day, four requiring general anesthesia.
  • 8. ASC Timeline The industry continues to grow, with the number of ASCs reaching triple digits. ASCA and others join together Medicare modifies the ASC to form the Accreditation list to use specific CPT codes Association for Ambulatory and expands the list to Health Care (AAAHC). include 1,535 procedures. 1982 1988 1979 1987 Medicare approves payment The number of ASCs in the to ASCs for approximately 200 US reaches 1,000. Using the procedures, which are placed information from a 1986 in one of four payment groups cost survey of ASCs, with payment rates between Medicare implements a new $231 and $336, based upon a payment system, which cost survey of 40 ASCs. remains the basis for ASC payments today.
  • 9. ASC Timeline ASCs go international when the International Association for Ambulatory Surgery More than 5,300 ASCs exist (IAAS) is founded during the in the US today, performing 1st International Congress on 23 million surgeries Ambulatory Surgery in annually. Medicare has Brussels. Medicare expands granted approval for ASCs the ASC list to cover more to perform more than than 2,000 procedures. 3,500 procedures. 2002 1995 2011 Seventy-eight individuals earn the CASC credential, the first- ever ASC-specific credential, establishing the ASC administrator as a separate and distinct career from other health care management and clinical positions.
  • 10. Number of ASCs Per State
  • 11. Number of ASCs Per Capita (Top Ten) ASCs per State Population ASCs 100,000 People Maryland 5,773,552.00 354 6.13 Wyoming 563,626.00 19 3.37 Washington 6,724,540.00 220 3.27 Idaho 1,567,582.00 51 3.25 Georgia 9,687,653.00 287 2.96 Delaware 897,934.00 24 2.67 New Jersey 8,791,894.00 233 2.65 Nebraska 1,826,341.00 47 2.57 Arizona 6,392,017.00 152 2.38 Tennessee 6,346,105.00 149 2.35
  • 14. Specialties Served in ASCs by Claims 2,000 1,971,000 1,802,000 31.1% 28.4% 1,800 1,600 1,384,000 21.8% 1,400 In Thousands of Dollars 1,200 1,000 800 508,000 600 8.0% 278,000 400 4.4% 209,000 76,000 74,000 3.3% 200 1.2% 14,000 1.2% 3,000 23,000 0.2% 0.0% 0.4% 0
  • 15. Specialties Served in ASCs by Reimbursement $1,400 $1,416 42.4% $1,200 $1,000 In Millions of Dollars $800 $627 18.8% $600 $463 $407 13.9% 12.2% $400 $120 $134 $200 3.6% $68 $59 4.0% $30 2.0% $15 1.8% $1 0.9% 0.4% 0.0% $0
  • 16. ASC Ownership Corp-Hosp-Phys, Corporate, 6% 2% Hospital, 2% Hosp-Phys, 17% Corp-Phys, 8% Physician, 65% *Note: The Corporate-Hospital category had 0% ownership in the survey results.
  • 17. ASC Ownership Trends Physician Other 2009 92% 8% 2008 90% 10% 2007 91% 9% 2006 91% 9% 2005 91% 9% 2004 90% 10% 2009 2008 2007 2006 2005 2004 PHYSICIAN 62% 63% 61% 61% 63% 61% CORPORATE 6% 7% 7% 7% 5% 7% HOSPITAL 2% 2% 2% 3% 3% 3% CORP-PHYS 9% 10% 10% 11% 10% 11% CORP-HOSP 0% 0% 0% 0% 0% 0% HOSP-PHYS 17% 16% 17% 16% 16% 16% CORP-HOSP-PHYS 3% 2% 2% 3% 2% 2%
  • 18. ASC Regulation • Federal Regulation Center for Medicare & Medicaid Services (CMS) • State Regulation Various State Health Department and/or Agencies • Local Regulation Primarily Building and Fire Code Compliance Enforcement
  • 19. CMS: Definition of an ASC Effective May 18, 2009 - “means any distinct entity that operates exclusively for the purpose of providing surgical services to patients not requiring hospitalization and in which the expected duration of services would not exceed 24 hours following an admission.” 42 CFR 416.2 DEFINITIONS
  • 20. CMS • Defines ASCs in Federal Law • Determines Payment Policies – Allowable Procedures – Applicable Rates – Annual Updates • Determines ASC’s Participation in Federal Programs – Conditions of Coverage -Infection Control Checklist • Administer Quality Reporting Programs
  • 21. ASC Accreditation ASCs are Accredited by 4 different Organizations: Accreditation Association for Ambulatory Health Care (~3,010) Joint Commission (~637) American Association for Accreditation of Ambulatory Surgical Facilities American Osteopathic Association As of Spring 2011: Over 70% of ASC facilities in the U.S. are accredited by one of these four organizations
  • 22. Top Ten Procedures by Volume HCPCS 2010 Specialty Short Descriptor Code Volume Ophthalmology 66984 1,123,252 Cataract surg w/iol 1 stage Gastrointestinal 43239 516,603 Upper gi endoscopy biopsy Gastrointestinal 45380 358,733 Colonoscopy and biopsy Gastrointestinal 45385 275,898 Lesion removal colonoscopy Gastrointestinal 45378 271,762 Diagnostic colonoscopy Ophthalmology 66821 256,749 After cataract laser surgery Pain Management 64483 245,274 Inj foramen epidural l/s Pain Management 62311 229,492 Inject spine l/s (cd) Pain Management 64494 191,097 Inj paravertebral facet joint Pain Management 64484 128,510 Inj foramen epidural add-on
  • 23. Reimbursement: Most Highly Paid Procedures HCPCS Final CY 2011 Short Descriptor Code ASC Payment 69930 Implant cochlear device $29,056.15 33249 Implant pacemaker leads $25,360.04 33240 Insert pulse generator $22,212.75 64568 Neurostimulator implantation $21,333.84 61886 Placement cr. neurostimulator $17,849.58 61885 Insertion /redo neurostimulator $13,816.04 63685 Insertion/redo spinal stimulator $13,816.04 64590 Insertion/redo gastric stimulator $13,816.04 62361 Implant spine infusion pump $12,221.29 62362 Implant spine infusion pump $12,221.29
  • 24. Operational Data ASCA Outcomes Monitoring Project Business Operations (#4) Net Charges Days in A/R Outstanding Paid Clinical Non-Physician Hours Clinical Operations (#19) On Time Rate Operating Room Time Cancellation Rate Clinical Outcomes (#19) Cardiac/Respiratory Arrest Nausea / Vomiting Retained Foreign Object
  • 25. ASC Quality Collaboration • Funded by ASCA & ASC companies • Outcomes reporting • Outcomes measure development • Sharing best practices • Clinical studies • Promoting transparency
  • 26. Quality Data Reporting Six NQF Endorsed Measures • Patient Burn • Patient Fall • Wrong Site, Side, Patient, Procedure or Implant • Hospital Transfer / Admission • Prophylactic Intravenous Antibiotic Timing • Appropriate Method of Hair Removal
  • 27. Current Trends Physician Employment MDs per ASC 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2002 2003 2004 2005 2006 2007 2008 2009 1990 1995 2000 2005 2010E Unemployment High Deductible Plans 10 30 9 8 25 7 20 6 5 15 4 3 10 2 5 1 0 0 2005 2007 2009 2011 2013 2015 2006 2007 2008 2009 2010
  • 28. Impact Growth in Growth in Outpatient Surgery Number of ASCs 12 12 Year-over-Year % Change Year-over-Year % Change 10 8 8 4 6 0 4 -4 2 -8 0 1998 2000 2002 2004 2006 2008 2010 1998 2000 2002 2004 2006 2008 2010
  • 29. ASC Future ASCs: The Innovative Solution for Health Care Access Convenience Provision of Critical Services Cost Efficiency Transparency Quality Clinical Outcomes Patient Satisfaction
  • 30. Ambulatory Surgery Centers in the United States of America David Shapiro, MD National Conference on Ambulatory Surgery Bangalore