OR Business
Mind the gap: Why Medicare pays ASCs less than HOPDs—and what that means
For decades, ambulatory surgery centers (ASCs) have shown their ability to deliver high-quality surgical care at substantially lower cost than hospital outpatient departments (HOPDs). ASCs achieve these savings through leaner operations, streamlined staffing models, and specialty-focused efficiencies, not by compromising safety or outcomes. Studies consistently highlight procedures performed in ASCs…
ASCs face growing pressure to centralize implant management as specialty volumes surge
Ambulatory surgery centers (ASCs) are taking on more high-acuity, same-day procedures than ever before. This growth is driven by evolving clinical protocols, cost-conscious reimbursement strategies, and expanded capabilities in outpatient care. Specialties like orthopedics, spine, ophthalmology, and cardiovascular care are moving more complex cases—and the implants that come with them—out…
Hospital margins improve as outpatient revenue accelerates, but costs loom
Editor's Note Hospital operating margins rose in June as outpatient revenue growth fueled stronger financial performance, though rising bad debt and non-labor expenses continue to pressure stability, according to Kaufman Hall’s latest National Hospital Flash Report. HealthLeaders August 18 covered the findings. As detailed in the article, the median year-to-date…
Health systems lean toward established partners for AI adoption
Editor's Note Most US health systems are choosing artificial intelligence (AI) tools from vendors already connected to their electronic health record (EHR) systems rather than from new, standalone AI startups, Modern Healthcare August 14 reports. The findings come from a July survey of 233 health systems conducted by the Healthcare…
OR Business Management Summit chair outlines data-driven strategies for financial, operational success
Although hospital performance from January to April 2025 outpaced the first 4 months of 2024, according to Kaufman Hall’s June 2025 “National Hospital Flash Report,” many surgical departments remain under intense financial pressure. Labor and supply costs continue to rise, while surgical services are especially vulnerable to inefficiencies like labor…
Hospital CEO departures surge, boards turn to interim leadership
Editor's Note Hospital CEO turnover climbed 3% in the first half of 2025, with organizations shifting toward interim appointments as financial and regulatory pressures intensify leadership changes, according to an August 5 article in HealthLeaders. Citing data from Challenger, Gray & Christmas, the outlet reports that hospitals recorded 68 CEO…
5 costly mistakes to avoid when building an ASC
Editor's Note Poor planning and rushed decisions derail too many ambulatory surgery centers (ASCs) before they open their doors. In a recent blog post, ASC consultant Emily Spooner outlined the top five errors commonly made during ASC development, offering targeted guidance on how to avoid them. According to the post,…
Healthcare providers express cash flow concerns under new 340B rebate model
Editor's Note Healthcare providers could experience significant cash flow and operational changes under a new voluntary pilot program that fundamentally alters how the nation's second-largest drug payment program operates, according to an August 11 article in Modern Healthcare. As detailed in the article, The Health Resources and Services Administration announced…
Hospital margins stable despite rising drug, supply costs
Editor's Note US hospitals and physician practices demonstrate steady financial performance through the second quarter of 2025, with health system operating margins holding at a median 1.2% year-to-date, according to new data from Strata Decision Technology analyzing more than 1,850 hospitals and 152,000 physicians. DotMed reported the news August 4,…
Study: Loophole enables urban hospitals to qualify for rural subsidies
Editor's Note Hundreds of urban hospitals have obtained dual urban-rural Medicare classifications since a 2016 policy change, enabling them to qualify for reimbursement programs intended for rural providers. Fierce Healthcare reported the news August 4. As detailed in the article, a study published in Health Affairs by Johns Hopkins and…
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