Orthopedics emerges as a leading source of Medicare ASC savings

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Musculoskeletal surgeries performed in ASCs are projected to generate $13.5 billion in Medicare fee-for-service savings from 2025 to 2034, overtaking digestive system procedures to become the second-largest specialty by program savings, according to an analysis of KNG Health data published May 6 by the Ambulatory Surgery Center Association.

Cardiovascular surgeries are projected to see the steepest growth in ASC-driven Medicare savings over the same period, rising more than 300%. The shift reflects CMS’ continued expansion of the ASC Covered Procedures List, which has added higher-acuity orthopedic, cardiovascular and spine cases since the 2020 analysis of KNG Health data.

The 2020 study predated Medicare’s first reimbursement of total knee arthroplasty in the ASC setting, which CMS approved in 2020. The most recent analysis incorporates real claims data for total knee arthroplasty alongside newer additions to the procedures list, producing a higher projection than the $73.4 billion the 2020 study forecast for 2019 to 2028.

In total, the analysis projects ASCs will save Medicare $84.8 billion from 2025 to 2034. Medicare pays ASCs roughly half of what it pays hospital outpatient departments for the same procedures, with annual savings rising from $5.1 billion in 2024 to a projected $12.5 billion in 2034.

At the Becker's 23rd Annual Spine, Orthopedic and Pain Management-Driven ASC + The Future of Spine Conference, taking place June 11-13 in Chicago, spine surgeons, orthopedic leaders and ASC executives will come together to explore minimally invasive techniques, ASC growth strategies and innovations shaping the future of outpatient spine care. Apply for complimentary registration now.

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