HOPD vs ASC: Which one is right for you?

Everyone wants lower cost options for their care. Patients, payors, physicians, even hospital administrators which is probably why so much attention is being paid to the ambulatory space. Ambulatory facilities are often cheaper to build and operate, closer to where patients and physicians work and play, all while providing a lower cost care options for their communities. Sounds like a no brainer, right? ?But if it was that easy, every healthcare system and hospital would have already done this.

The fact is that building a comprehensive ambulatory surgery strategy is a continuum of care that provides the right care, at the right time, in the right location. This can happen in a variety of ways, an expansion of your current hospital outpatient department (HOPD), a new ambulatory surgery center (ASC), or maybe investing in an established ASC. There is not one right way to do this, but taking time to understand the differences is a good place to start.

So, which one is right for your situation? Well, that depends.

Each type of ambulatory facility has its place, but not every facility type will complement your strategy. Are you looking to grow market share? Maybe a JV ASC makes the most sense. Decanting your overfull main hospital? Maybe expanding your HOPD footprint is the better choice. Downward pressure from payor and limited ability to control costs? Including a lower cost, lean operating ASC in your facility plan could help you address that. And while none will be a perfect fit, having a clear understanding of risks and benefits each facility offers is invaluable to understand before making any decisions.

Whatever your strategy, avoid the reactive trap of building a space first, then figuring out how to align your physicians and get reimbursed adequately afterwards. Instead, take the longer more detailed approach to do your due diligence up front. Develop physician and reimbursement strategies first. Those who go slow to go fast will be the clear leaders in successfully building and executing a continuum of service offerings that meet the needs of their patients, providers, and payors.

Join us next week for part 4 of our hospital ambulatory strategy series focused on the importance of creating alignment between your strategy and incentives.? ??

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