Behind the surgery center boom: on Medicare savings, physician ownership and the primary care connection

Ambulatory surgical centers (ASCs) are a key part of U.S. health care, producing successful patient outcomes while remaining an avenue for physician ownership and control of medicine.

They also are a financial money-saver for Medicare, according to findings published earlier this year by the Ambulatory Surgical Center Association (ASCA). The association has publicized a study by analyst KNG Health Consulting that found ASCs are saving Medicare $4 billion to $5 billion a year when surgical procedures cost less than those at hospitals. That figure is projected to grow now through 2034.

In this video interview, Alex Taira, associate director of public and regulatory affairs for the Ambulatory Surgery Center Association (ASCA), unpacks the results and discusses what's driving growth in outpatient surgery. Taira describes where ASCs are concentrated across the country and why physicians often own a stake in the facilities where they operate. The research from KNG Health Consulting puts a dollar figure on the Medicare savings, and Taira notes that the savings flow through to patients as well as the federal program. The conversation also turns to what's next: the rising role of Medicare Advantage, ongoing debates over site-neutral payment policy, and frustrations with prior authorization.

Admittedly, primary care will remain the first point of contact for many patients seeking healing. Here’s what primary care physicians should know about the economics behind a referral when they consider where to send patients for surgery.