6 Business Planning Steps for Spine-Driven Centers

Spine

At the 11th Annual Orthopedic, Spine and Pain Management-Driven ASC Conference on June 12, Jeff Leland, CEO of Blue Chip Surgical Center Partners, gave a presentation on key business strategies for spine-driven ambulatory surgery centers. Mr. Leland offered business tactics for creating and maintaining a successful spine center. 1. Understand the trends driving the transition of spine. There are a number of trends that suggest a wonderful future for the transition of spine to the outpatient setting, said Mr. Leland.  The Baby Boomer Bubble, better anesthesia, better imaging, minimally invasive technology and study data all support the transition of spine to ambulatory surgery centers. ASCs are cost effective alternative to hospitals. Declining physician reimbursement, the lack of surgical hospital growth and the minimal regulatory risk associated with ASCs all indicate that now is an optimal time to bring spine surgery to surgery centers. From the spine surgeon's point of view, ASCs offer the opportunity for enhanced patient satisfaction, the tools to support a focus on care, increased efficiency, a feeling of autonomy, ancillary income and the potential to create a high-value asset.

2. Select the right surgeon partners
. There are approximately 5,550 spine surgeons in the country and only 20 percent of these surgeons are involved in surgery centers. There is a large pool of spine surgeons that have the opportunity to enter the arena of outpatient spine surgery, but those seeking to build a spine center or add a partner to an existing center need to choose a committed partner. "You need to know your partners and what you are getting into. Highly focused surgeons will end up growing a stronger business," said Mr. Leland.

3. Choose the right procedures and clinical practices. Some of the most common spine procedures performed in an ASC include single level lumbar laminectomy, single level anterior cervical discectomy and fusion and foraminotomy. The right procedure mix paired with sufficient case volume is key. A successful center will need the minimum of four spine surgeons and two pain management physicians to support a profitable case volume. The ideal center with surgical specialties would include six to eight spine surgeons.

4. Embrace the future of retail-based medicine
. The future is going to be more retail-oriented, said Mr. Leland. Physicians will have to learn to become much more patient accessible, friendly and consumer-oriented. Patients have to be properly prepared. Educate patients on expectations. "The days of building a surgery center and expecting cases to just come are over," said Mr. Leland.

5. Consider your partnership options. Centers can be independent or consider entering into a partnership agreement with a larger entity. Hospitals and management companies offer spine centers stability in time when the healthcare industry is beginning to move towards consolidation. A spine center has the ability to operate based on a niche-focused approach. Spine is a complex specialty and unique service. "Spine surgeons seeking to begin a center or create a partnership for an existing center can pitch the niche strategy to hospitals and offer to be the nucleolus of the hospital's spine services," said Mr. Leland. One effective partnership model to consider is a center owned 51 percent by surgeons, 24.5 percent by a hospital and 24.5 by a management company.

6. Understand the changes and challenges in reimbursement
. Reimbursement in medicine is rapidly evolving. More Americans will begin to have insurance. "I see this as a contracting opportunity to reduce the cost of spine surgical care," said Mr. Leland. Though reimbursement policies are difficult, the centers that embrace the changes and seize the opportunities presented by the changes will thrive.

More Articles on Spine:
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Aurora Spine Names Richard Moss VP of International Business Development

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