Monitoring cash flow, reviewing contracts and improving efficiency are a few strategies that ASC leaders are taking to guard against a potential recession.
Six ASC leaders joined Becker’s to discuss their strategies.
Editor’s note: Responses have been lightly edited for clarity and length.
Question: What strategies are you using to recession-proof your ASC today?
Kathleen Hickman, RN. Administrator and Clinical Director of Dutchess Ambulatory Surgical Center (Poughkeepsie, N.Y.): Improving efficiency is the biggest and most challenging strategy. Most ASCs operate in a very lean manner so trying to find additional areas of improvement is critical in terms of decreasing costs while still providing the highest quality care. Reviewing all contracts frequently can lead to cost savings and avoiding complacency. With staffing being one the highest expenses in an ASC, creative and flex staffing is a strategy to decrease costs in a very unsettled economy.
Heather Combs, RN. ASC Administrator at Austin (Texas) Regional Clinic: ASCs historically have always had to focus on controlling operating costs as the profit margins are significantly less than HOPDs and hospitals. As payer reimbursements continue to decrease year over year, and the impacts of tariffs begin to be seen, it puts more pressure on increasing operational efficiencies and pursuing strategic partnerships with health systems or MSOs to benefit from economies of scale. MSOs’ value-based care models and partnerships with GPOs provide higher margins. Austin Regional Clinic has provided care for over 25% of the Austin patient population for 45 years and recognized the need to provide ambulatory surgery services to their patients. ARC will add two ASCs, South Austin and Round Rock, by mid-2026.
Benjamin Stein, MD. President and CEO at Capital Orthopaedic Surgery Center (Germantown, Md.): Creating a recession-proof ASC will unfortunately be impossible, but we are creating and deploying more-nuanced analytic tools at our ASCs to allow for improved management of costly material spend and facility efficiencies. In tandem we are seeking novel partnerships with self-insured employers to dial in our ASCs unique ability to deliver best in class care but at low cost in the realm of high-cost orthopedic procedures such as joint replacement and spine surgery.
Stephanie Tomlin, RN. Administrator of Rincon Surgery Center (Tucson, Ariz.): To recession-proof ASCs, focusing on staffing, price transparency, refining collection processes and advocating for better CMS reimbursements are vital strategies. Additionally, lean methods, like just-in-time replenishment, can help manage supply costs effectively. Implementing Kaizen principles for continuous improvement can drive operational excellence and cost savings.
Melissa Waibel. CEO of Guam Surgicenter: Strategies to recession-proof your ASC are as follows: monitoring cash flow and having a healthy reserve, review processes and look for efficiencies to reduce time and cost, keep tight control on matching work hours to the needs of the business, recontract with insurance companies regularly, build strong relationships with vendors to get the best rates possible. Overall, treat the business like a well-run OR. Don’t open it until you need it, be efficient with your time, get the best quality at the best price and constantly look for ways to improve.
Andrew Weiss. Administrator of Summit Surgical Center (Vorhees, N.J.): As far as recession proofing, we are faced with several new challenges, including many of us now subsidizing anesthesia coverage. A few things:
- Compress your OR schedules to avoid running half-empty rooms.
- Review your vendor contracts and watch for contracts that automatically renew. You may have a chance to renegotiate price and terms.
- Collect patient payments up front on the day of service. This will reduce your [accounts receivable] and collection expenses.
- If you haven’t already joined a [group purchasing organization], now would be a good time.
- Consider EMRs. Even though you have upfront costs for implementation and hardware, the [return on investment] can be impressive, particularly in the revenue cycle.
The post How to ‘recession proof’ your ASC appeared first on Becker’s ASC.
