February 6, 2025
The results are in. An interview featuring Scott Bacon is 2024’s fourth most listened-to episode for This Week in Surgery Centers, a weekly podcast produced by HST Pathways.
As Senior Vice President of Business Development, Bacon works with the Compass team to guide our health system partners as they convert hospital outpatient departments into ambulatory surgery centers.
HOPD-to-ASC conversions can be smart strategies for health systems looking to strengthen continuity of care in their service areas, boost patient satisfaction [link to Abdul/Will article in progress], and negotiate more favorable rates with payers. The move can also be a powerful physician alignment tool because it gives doctors their time back.
“It’s not uncommon for physicians to tell us that a day operating in an HOPD can end at 7 or 8 in the evening,” Bacon told interviewer Nick Latz. “When we look at their daily caseloads, we know that they can easily complete the same number of cases within a shorter time frame at an ASC and be out by early afternoon.”
A valuable perk for physicians is the option to replace at least some of their HOPD days with shorter days at your health system's newly converted ASC. The more limited range of planned procedures in a well-managed ASC leads to a more predictable scheduling environment. In contrast, HOPDs must contend with urgent cases that often necessitate rescheduling and unplanned downtime for physicians.
An ASC empowers your health system to offer both employed and independent physicians other benefits besides more efficient workdays. Doctors also appreciate specialized equipment and surgical staff that ASCs offer, as well as equity ownership and a voice at the governance table.
While converting an HOPD to an ASC offers potential advantages, the move requires careful consideration. In the podcast episode Scott provided guidance for health systems exploring this option. Here are some highlights.
On the surface, a HOPD-to-ASC conversion may seem like your simplest option. But acquiring an existing ASC or building a new ASC may be a better decision for your health system. In some cases, you could spend more time and money on an HOPD conversion than you would to build a de novo ASC.
Location matters. Your underutilized HOPD is not a suitable location for an ASC if it's inconvenient for potential physician partners or for the patients you hope to attract. And, when you convert an HOPD, you give up the opportunity to expand your health system’s presence in a new geographical area serving new patient populations. The value of a new real estate investment is also worth considering.
For these and other reasons, our team works closely with health systems to ensure that their ASC development strategy delivers maximum value for the entire organization.
Rigorous financial modeling ensures sound ASC development decisions. When the Compass team evaluates a potential HOPD-to-ASC conversion, we look at existing HOPD case volume and plan carefully for minimal revenue disruptions during case migration. For example, we may plan to redirect cases unsuitable for the ASC to other HOPDs within the health system.
Our financial analysis considers not only HOPD procedures, but also ancillary services related to procedures, such as imaging and physical therapy.
If you operate your new ASC exactly like you ran the HOPD that used to occupy the space, you are doomed to fail.
Scott and the Compass team recommend a separate ASC infrastructure that is accountable to one key health system leader — a chief of operations, for example. Dedicated ASC infrastructure and governance support specialized payer contracts, revenue cycle management (RCM), supply chain optimization, staffing models, and other operational strategies crucial for ASC success. You should plan for some of these elements, such as case migration and ASC-focused payer contracts, alongside (or even before) physical facility planning.
If you’re leery of starting an HOPD-to-ASC conversion from scratch, partnering with seasoned ASC experts can help. Contact us to weigh your options.
