Benchmarking Stats for Surgery Centers
April 28, 2009 by Ann Deters
Filed under Features
In the past six months, a study based on over 230 freestanding ASCs and over 1 million cases was published by VMG Health Intellimarker, “Annual 2008 Ambulatory Surgical Centers Financial & Operational Benchmarking Study”. Here are some interesting statistics extracted from this study, particularly for the field of Ophthalmology.
| CASES | Â | |
| Top 3 (overall) | Total Cases | % of Total Cases |
| Ophthalmology | 177,359 | 15% |
| GI | 225,208 | 19% |
| Orthopedics | 207,532 | 17% |
 However, top case specialties varied based on size of the surgery center. If center had <3,000 cases, Orthopedics, Ophthalmology & Pain were the top 3 specialties, which represented over 50% of the total caseload. If center had 3,000 to 6,000 cases, Orthopedics, GI & Ophthalmology were the top 3, representing 47% of the total. For the largest centers (>6,000 cases), GI, Orthopedics and Ophthalmology topped the charts with the three specialties combined representing 52% of the total.
| NET REVENUE (per case) BY REGION | |||||
| Â | Midwest | Southeast | West | Southwest | Northeast |
| Ophthalmology | $1087 | $1098 | $1164 | $1269 | $1123 |
| Orthopedics | $2182 | $1865 | $2265 | $2312 | $1813 |
| ENT | $1633 | $1257 | $1712 | $1596 | $1245 |
| Plastic | $1537 | $1079 | $1654 | $1467 | $1360 |
| Podiatry | $1410 | $1258 | $1607 | $1574 | $1346 |
| General Surgery | $1306 | $1187 | $1236 | $1692 | $Â 934 |
| Urology | $1301 | $1086 | $1557 | $1305 | $1011 |
| Pain | $Â 925 | $Â 790 | $Â 916 | $Â 864 | $Â 950 |
| GI | $Â 836 | $Â 616 | $Â 824 | $Â 869 | $Â 705 |
Surprisingly, eye revenue is not too bad in the Southwest region and is the 4th highest in net revenue for the Southeast region. However, in the Midwest, the ophthalmic revenue per case ranks 7th and provides only 50% of what an orthopedic case will generate for a center.
| PROFITABILITY BY REGION – Operating Income % to Net Revenue | |
| Â | % |
| All Facilities | 23.1% |
| Midwest | 35.9% |
| Southeast | 25.1% |
| West | 20.7% |
| Northeast | 19.6% |
| Southwest | 19.4% |
The Midwest leads the way in profitability of their centers with lower Employee Salary and Wages, Occupancy Costs & Medical & Surgical Costs. The least profitable region was the Southwest, due primarily to higher Medical & Surgical Costs. Surprisingly, the regions that carried the least amount of debt were the West and the Northeast (between 32% & 35% of Total Assets) , while the Southeast and Southwest carried the largest debt load (around 50% of Total Assets).
Though the study is based on data from 2007, it will be interesting to see where net revenue per case and profitability ends up in 2008 and 2009, given the changes in Medicare reimbursement.
Stay tuned as we will be updating our blog with this information as soon as Intellimarker publishes their 2009 report this summer.
If you’d like more information on this 2008 study, please get more info here
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A post by "Ann Deters" http://www.VantageOutsourcing.com Ann Deters passion is to be an advocate for hospitals and surgery centers, allowing them to maximize profits by providing cataract outsourcing services in an efficient and low cost manner. Ann, has been a columnist about health care issue for two decades writing for numerous health care magazines. |
