Business
Small can be better at ASCs
NEWS IN BRIEF — Posted Dec. 19, 2005
A new survey found that smaller ambulatory surgery centers tend to have better net incomes per case than their larger counterparts.
The Medical Group Management Assn. reported that its survey of 2004 data from 163 ASCs found that centers with fewer than 3,000 cases per year reported a mean net income of $473.02 per case, 28% more than the $341.32 per case received by larger facilities.
Experts attributed the gap to several factors, including the difference in services typically offered by smaller facilities versus larger ones. Daniel Stech, survey operations director for MGMA, said smaller centers tend to focus on one specialty, which may enable them to hone in on just a few procedures that have "pretty good" margins.
But the larger facilities have their own advantages as well, particularly benefiting from their heftier purchasing power. The study found that ASCs with fewer than 2,000 cases per year paid about $228 per case for medical and surgical supplies. Facilities with 5,000 cases or more paid only $185.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/12/19/bibf1219.htm.
