Fig. 3 Data is from the Definitive Healthcare Atlas All-Payor Claims Dataset. Claims data is sourced from multiple medical claims clearinghouses in the United States and updated monthly. Data accessed September 2024.
While many procedures in ASCs are trending up, it’s equally important to understand declines in certain volumes. For instance, colonoscopy with lesion removal by hot biopsy forceps saw a 40% drop from 2016 to 2023. This likely reflects broader shifts in clinical practice that favor other techniques and technologies, such as snare polypectomy.
These trends underscore the need for medtech companies to adjust strategies and offerings in response to shifting procedural volumes, changes in regulations and reimbursement, and evolving care practices in ASCs. This could involve optimizing sales forces, concentrating on key accounts, or reallocating resources to focus on high-growth areas. Parsing claims data at the affiliation or physician level can give even deeper insight into which facilities and regions are seeing the most growth (or declines) in surgical procedures and surface the most promising opportunities.
The impact of ownership changes on ASC purchasing
Another significant factor influencing how medical device companies navigate the ASC landscape is ownership. Ownership models in ASCs vary based on the control exercised by physicians, management companies, and hospital systems—the key industry players.
The ongoing shift from physician-owned to non-physician-owned ASCs introduces new challenges and opportunities for device companies. In physician-owned ASCs, surgeons are often the primary decision-makers, influencing purchasing directly. In contrast, hospitals rely on purchasing agents and value analysis committees to manage procurement.
Today, about half of all active ASCs are part of larger networks like health systems, which adds a layer of complexity to their purchasing dynamics. The five largest ASC operators—Tenet Healthcare, HCA Healthcare, OptumCare, Envision Healthcare, and AMSURG—manage nearly a quarter of ASC operating rooms in the U.S., according to data from SurgeryCenterView.
Physician-owned ASCs might focus on surgeon-centric tools and cost-effectiveness, while integrated delivery networks (IDNs) like HCA or Tenet, along with corporate entities, might prioritize scalable solutions and broader network integration. Additionally, many ASCs are affiliated with group purchasing organizations (GPOs), which influence purchasing decisions and encourage standardization across facilities.
Medical device companies must consider the unique needs of each ownership model and how these dynamics impact operations. Leveraging opportunities for network effects and aligning with the priorities of physicians or corporate entities is crucial. Furthermore, understanding which ASCs are linked to specific GPOs and navigating the influence of these GPOs on procurement strategies can help boost market penetration. Healthcare reference and affiliation data can offer valuable insights in this process.
The power of quality measures in targeting facilities
As ownership models evolve, so do the priorities of ASCs when it comes to purchasing decisions. Today’s sales teams are shifting their focus from merely cost to the impact on safety and outcomes. Devices that enhance quality metrics, like PSI-90, are becoming more attractive. Although upfront costs might be higher, facilities can save millions in CMS penalties through improved quality metrics.
Critical quality measures to focus on include:
- PSI-90: A composite of 26 safety-related indicators
- Hospital-acquired condition (HAC) scores: Metrics like CLABSI, CAUTI, SSI, MRSA, and CDI
- Revenue loss: Revenue loss related to HAC penalties
- HCAHPS scores: Overall patient satisfaction snapshots
- Readmission rates: Key indicators of care quality
Facilities struggling with these metrics and facing reimbursement penalties by CMS are prime targets. By aligning their products with the quality metrics that matter most to these facilities, medtech companies can address major pain points, improve patient safety, and make a compelling case for their devices. This strategic approach enhances the value proposition when targeting or marketing to ASCs.
Discover opportunities in the growing ASC market
The ASC market is transforming quickly with shifts in procedure volumes, ownership, and operational and strategic priorities. By understanding these dynamics, medtech companies can stay nimble and responsive in a competitive landscape. Data is essential in this process, offering crucial insights that empower organizations to navigate the market strategically.
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