Michael Warne, CEO of Associated Gastroenterologists of Central New York in Camillus, joined Becker’s to share his perspective on the growing financial pressures facing independent ASCs — and why some may turn to hospitals for support despite concerns over operational impact.
Editor’s note: This response was edited lightly for clarity and length.
Michael Warne: I think most independent ASCs would prefer to stay independent — that’s kind of the whole point. But with flat reimbursement and rising costs across the board, it’s getting harder to make the numbers work.
In some cases, teaming up with a hospital or health system can help — mainly because they have more leverage with insurance companies and deeper pockets to cover big-ticket expenses — like anesthesia, which has become one of the most challenging and expensive line items to manage.
But from a day-to-day standpoint, I don’t think hospitals are coming in to make ASCs run better. These centers are already super efficient, run by doctors and admins who know the local market and have spent years fine-tuning operations. So no, they probably won’t improve workflow — but if they can bring better rates or support on the financial side, there’s definitely some value there.
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