As economic pressures mount and payer dynamics shift, ASCs are turning a sharper eye toward their contracting strategies.
Leaders say proactive contract management is not just a back-office function, it’s a survival imperative.
Adam Bruggeman, MD, CEO and founder of Texas Spine Care Center, warns that independent ASCs are at a growing disadvantage in highly concentrated healthcare markets.
“Many independent and small ASCs struggle to obtain fair pricing from insurance companies leading to significant gaps in payment between independent vs integrated facilities,” he said. “In addition, narrow networks continue to increase which can leave some ASCs facing out-of-network scenarios.”
Kathleen Hickman, RN, administrator and clinical director of Dutchess Ambulatory Surgical Center, said that ASCs must stay hyper-focused on efficiency to remain financially viable.
“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,” she said. “Reviewing all contracts frequently can lead to cost savings and avoiding complacency.”
Ms. Hickman noted that staffing, one of the highest expenses in ASCs, must be optimized through flexible and creative approaches — particularly in an uncertain economic climate.
Andrew Weiss, administrator of Summit Surgical Center, also points to operational discipline and strategic contracting as fundamental to staying afloat.
“Review your vendor contracts and watch for those that automatically renew. You may have a chance to renegotiate the price and terms,” he said.
Mr. Weiss also said that the value of joining a group purchasing organization and considering electronic medical records for their long-term financial upside, despite upfront costs.
Looking ahead, Robin Yeager, RN, BSN, COO of Advanced Ambulatory Surgery Center, believes contract strategy will increasingly be tied to broader shifts in the ASC landscape.
“We’ll see broader adoption of bundled payments and outcome-based contracts,” she said. “ASCs will need to demonstrate not just cost savings, but long-term patient value — pushing centers to invest more in post-op follow-up and quality tracking.”
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