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Why Do ASCs Fail? - August 2015 - Outpatient Surgery Magazine

Outpatient Surgery Magazine, providing current information on Surgical Services, Surgical Facility Administration, Outpatient Surgery News and Trends, OR Excellence and more.

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T here's a lilt of sadness in her voice when Tracy Biedermann, RN, CPAN, talks about the Harrison Outpatient Surgery Center — one of the first, if not the first, freestanding outpatient centers in New York State. "It was a great surgery center, really a center of excellence," she says, recalling the halcyon late 1980s, when — fueled by an ingen- ious new concept — the Harrison Center seemed to have found a can't-miss formula. Outpatient surgery was a new world of oppor- tunity, and in and around downtown Syracuse, where the center stood, there was plenty of business and virtually no competition. "It was quite lucrative back then," says Ms. Biedermann, a staff nurse at the center, and later its recovery room supervisor. "Outpatient surgery was really up and coming. The business grew, and the owners even opened a second center (in Camillus, N.Y.)." But over time, a new reality began to set in. If the business model — one that involved a steady number of takers and a diminishing num- ber of givers — seemed too good to be true, that was because it was. It was a model that couldn't adapt to an evolving and increasingly competitive landscape. "Over the years, many of the surgeons who were stakeholders retired or began operating at other facilities, and they were no longer bringing revenue to the center," Ms. Biedermann recalls. "But all the owners continued to receive distributions. That's fine, when you don't have competition." 3 5 A U G U S T 2 0 1 5 | O U T P A T I E N TS U R G E R Y. N E T The thing that keeps surgery centers open is financial performance. And the things that ensure good financial performance are having cases you can count on and good payer contracts.

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