Date: 09/12/2000
Q:
Our orthopaedic surgery practice performs a
significant number of cases in an outpatient setting. How do we assess the
feasibility of developing our own ambulatory surgical center?
A:
A feasibility study typically begins with an assessment of the regulatory
requirements (varies by state) of establishing an ambulatory surgery center
(ASC) in the context of your specific situation. Detailed capital and operating
budgets for the ASC would be prepared to evaluate the financial feasibility of
the ASC and to determine whether or not the project will meet the criteria as
defined by your state. A feasibility study would include an analysis of your
case volume to determine the transferability of those procedures to the ASC
(based on a number of factors including type and complexity of the surgery and
expected recovery time, payor mix, etc.) and the projected facility reimbursement
applicable to such procedures. The operating cost for the ASC would be estimated
to derive a "break-even" for the ASC which is then compared to the projected
number of "shiftable" cases.
Ed Luke
Senior Associate
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