Health Technology, Digital Healthcare
Article | July 14, 2023
Healthcare leaders are embracing the benefits of the cloud and software as a service (SaaS) after the pandemic challenged them to adapt and innovate like never before. 66% of them expect to move their technology infrastructures to the cloud this year – a number that is set to rise to 96% by 2024 [1]. Yet moving to the cloud is more than just a technology transformation. It’s an organizational transformation. Through cloud-based platforms and solutions, healthcare systems can begin to unlock clinical and operational insights at scale while speeding up innovation cycles for continuous value delivery.
Integrating data across the care continuum
In many ways, COVID-19 catapulted healthcare into the future. The pandemic created a new urgency for healthcare leaders to expand their virtual care offerings as a way of connecting with patients beyond the walls of the hospital. At the same time, they wanted the flexibility to scale up or down without large upfront capital expenditures. Effective crisis management also required the rapid exchange of patient information across systems and care settings. Thanks to the flexibility of pay-as-you-go cloud-based services and solutions, healthcare providers were able to quickly scale up digital health technologies to meet new demands. As a result, the acceptance of cloud has increased remarkably [2].
Keeping patient data secure and compliant
As healthcare leaders embark on this journey to the cloud, data protection is a critical consideration. Data processing in healthcare must comply with rigorous standards, whether it is HIPAA in the US or GDPR in the EU. Unfortunately, healthcare organizations also remain a top target for data breaches, calling for additional data security protection measures [3].
While the need for data security and regulatory compliance has historically motivated healthcare organizations to keep data on premises, today there is a growing awareness that moving to the cloud can in fact be the better road to travel. In fact, 60% of healthcare leaders now cite security as one of the top benefits of the cloud [4]. When healthcare organizations rely on their own data centers, they are responsible for security from end to end, which can become prohibitively complex and time-consuming as IT infrastructures expand over time. Cloud-based services and solutions can reduce dependency on local hardware to store sensitive data while automated software updates keep systems current.
Turning data into insights at scale at the point of care
Working from these foundations, the next big opportunity in healthcare is to capture the insights in the data that we are beginning to connect and integrate. This is where the cloud is also turning into a vital enabler, with its powerful computing resources and advanced machine learning capabilities, offered as microservices. These microservices provide the building blocks to develop new digital solutions that, once validated and approved, can be deployed at scale to help improve clinical outcomes and operational efficiency.
Enabling rapid experimentation and continuous value delivery
Embracing the cloud also changes the very nature of innovation in healthcare.
Healthcare-compliant cloud platforms offer a flexible foundation for rapid development and testing of digital applications. Cross-functional teams working in short and agile cycles can put new digital applications into the hands of physicians or patients more quickly, and then add new or improved features and functionalities as they gather additional user feedback. That means healthcare organizations get to innovate faster. And in smaller, more digestible increments.
Moving to the cloud is not all or nothing
Of course, none of this is to suggest that moving to the cloud is like switching a button. It’s a complex and multi-year journey for most of our customers. And it’s quite a journey for Philips, too. Any organization that has accumulated a large number of legacy systems and infrastructures over the years will have to manage a hybrid architecture during their journey to the cloud [5].
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Digital Healthcare
Article | November 29, 2023
The world is moving towards digitalization in every domain. And now COVID-19 has imposed a need for remote work and communication environments. In that case, healthcare organizations have started utilizing medical software with cutting-edge technologies that could offer mobile health solutions. And they could cater to such needs through a healthcare software development company.
Therefore, the medical institutions must opt for the right healthcare software vendor that is familiar with the new trends in the healthcare sector. Such companies can help optimize digital patient care through health care application development.
Importance of healthcare software development company Or why you need one?
Healthcare software development companies process applications to store, retrieve, and share user data. They are connected globally through cloud services. Partnering with a healthcare software company can avail you of many benefits like:
Better Patient Experience
A professional healthcare software developer can manage your medical software very smoothly and effectively. This could help in delivering better patient experiences. It also enables you to get access to the patient’s information before the appointment.
A dedicated healthcare development company will ensure to deliver faster patient checks with lesser paperwork. The information is filed electronically and considers order prescriptions smoothly.
Easy Scheduling and Maintenance
Healthcare software development services offer a strong scheduling system. It helps in finding out the convenient date and time for the patient’s appointment at their comfort. The medical software is flexible to perform such tasks smoothly. It also solves the issues of overbooking through proper scheduling.
Easy Billing and EHR
Billing is an intimidating task in the healthcare industry. A good healthcare software offers easy billing and EHR facilities. It also helps you automate the processes involved in the EHR model.
Healthcare software development services: Important factors to consider
Focus on usability and ease of use
Healthcare employees have a busy job. So, they prefer a user-friendly and easy-to-navigate interface. Only such an interface could ensure a high user adoption rate.
Additionally, healthcare institutions need to prepare their employees for any changes in their working process that the new software solutions might bring. For that, they need to provide adequate training and support, so that when the time comes, they can derive the maximum advantages out of the software solutions according to Vishal Shah from TatvaSoft.com
Integration with various applications
Various system integration requirements are used to make sure the new solutions work properly with other systems. You should also look further for whether current legacy systems need any upgrades to integrate them with the new solutions.
A professional administration
Access to the data by specialist doctors to update the data is necessary. However, access to the data should be strictly restricted with proper arrangements.
Information security
Medical care organizations need proper security measures with laws on data, protection, and other security principles. A leak of patient information is a critical issue that may cause weighty business misfortune. Only the approved staff with rights to oversee the admittance to information and patient records can approach the necessary data.
Development costs
Development costs depend on the size and complexity of the software or applications which is directly connected to the specific business needs of the healthcare organizations. First, an organization needs to identify key problems that require software solutions.
Also, consider the future IT needs of healthcare institutions such as potential business expansion and its scalability and integration requirements. A mobile workforce can help your organization attain more efficient workflow and enhanced productivity.
Healthcare IT infrastructure
IT infrastructure includes hardware, devices, internet connection speed, and/or mobile 4G connection, and many more. Healthcare agencies need to consider whether such infrastructure will be offered by the development company or if the organization has to use its resources.
While using employees’ resources may compromise security, it is suggested that employees must be given the devices and technologies by the companies. The devices and technology need to be updated on the regular basis.
Questions to Ask Healthcare Software Development Company
We have compiled a list of some questions that could help you get the best and most suitable medical IOS and Android app development partner.
Do you know/understand how HIPAA privacy protection rules might apply to healthcare software products?
HIPAA can be subtle and complicated. Federal and state laws have included HIPAA Privacy, Security, and Breach Notification Rules for the privacy and security protections for hospitals and medical institutions.
There will be many healthcare software developers who won’t be familiar with HIPAA and how it is applied to the products. You must check that out.
Can we sign an NDA?
If your business idea is precious from the IP (Intellectual Properties) perspective then you must ask the app development company to sign the NDA (Non-Disclosure Agreement) before you discuss any details of the project. It is also signed to protect sensitive business details from any third party.
Can I have the contact information of your former clients?
It is vital to have a look at the mobile application development agency before you consider them to hire. However, you won’t get the entire picture and other details but to get that you can ask the company for the contact information of some of their former clients.
Get in touch with their former clients, ask them about their experience working with the agency. The goal is to not only have a great app at the end but also go through an app development process that is stress-free, easy, and enjoyable.
Checking for reviews and references is the key when it comes to hiring mobile application developers.
What is your Software development methodology?
Latest best practices like scrum and agile development are far more reliable compared to conventional methods. Software development companies nowadays practice them to be more efficient and productive. They understand that the market changes quickly and to cope up with it, they need to be capable of adapting to the changes quickly.
How experienced are your healthcare software developers?
Check for the experience of the developers employed by your medical software development partner. They need to be qualified to build medical solutions and deliver them within a predetermined budget and timeline.
How to choose?
Even if you have decided to work with a healthcare software development company, there are hundreds of companies out there, and all claim to be the best in the field. How would you choose the one that can help you achieve your goals?
Analyze their Area of Expertise and their Experience as a Healthcare Software Developer
Quality is the one thing that should be never compromised no matter how complex your demands are. In the software development healthcare industry there are many standards and compliance requirements like HIS and HIPAA that need to be catered to.
Therefore, you need to analyze their area of expertise and their experiences. Only experienced healthcare software vendors can understand and fulfill the critical needs of customers.
However, expertise isn't enough. You also need to look at the certifications to gain deeper knowledge about the healthcare solution developers’ level of professionalism.
Go Through Their Healthcare Software Development Portfolio to Get a Better Idea of Projects and Quality
Go through the portfolio of the potential healthcare software development partner. Look at their past projects in the healthcare domain and check if it matches your requirements. Research about their market reputation and reach as well as find out whether they serve the organizations in your niche.
The key factors to look for in the portfolio:
Types of healthcare software they have delivered in the past
Clients they have served- names, strength, and value
The complexity of projects they’ve handled
The kind of experience they provide to the users
Technologies they excel in
Reviews and Ratings Could Be Helpful
Find out what the customers are talking about this company. Analyze their reviews and ratings. Understand how a particular healthcare software development company deals with their clients and cater to their services.
Carefully Understand their Process
Almost every company has a unique process to provide their healthcare software development services. But all processes generally consists of the following:
1. Requirement analysis
2. Scope freezing
3. Product prototyping
4. Product development
5. QA and testing
6. Deployment
7. Post-launch support
These software development processes could follow any approach from waterfall to agile methodology. Know the details of the process from your healthcare software development partner and understand how it aligns with your goals. And never hesitate to clear your doubts.
Know the Cost to Develop a Healthcare Software
Everyone has a budget and make sure you have communicated well about your software development budget with your potential healthcare technology partner. Ask them about the cost to build the software and look for the cost to quality ratio. After gathering all the necessary details, make an informed decision.
Understand the Engagement Models to Choose the Best
Engagement models are the ways of collaboration for the business relationship. You can choose from the following:
A. Turnkey Engagement Model
It is also known as the fixed price model. When you share your demands, you get a fixed quote for the work. This is an ideal model for:
Short-term projects
Projects with a well-defined scope
For assigning test tasks to the developers
B. Time and Material Basis Model
In this model, hiring is done based on time and material. A client agrees to pay a hired software development company based on the time the developers spend after developing their products and other relevant tasks. The payments are done according to the mutually agreed hourly rate. The model is suitable when:
Unclear requirements or specifications,
A long-term project with dynamic pricing
The client needs more flexibility
C. Dedicated Hiring Model
As the name suggests, it enables you to hire dedicated resources from the web development company. One can hire a web development company for your project, depending on the number of hours spent by the developers on your project. This model is best suited for:
Clients who are looking for an extension to their in-house team
Those who have unclear project requirements
The hirer is looking for more flexibility
Find out What Does the Healthcare Software Development Company has to Offer Post-launch
You are mistaken if you believe that the healthcare software development cycle ends with the launch of the product. There are chances of hitting obstacles any time and do not forget that the market keeps changing in terms of technology and user demands. This means you might need to upgrade your software or need to add some features to it.
For all such requirements, the healthcare software development agency offers support and maintenance services for a limited time post-launch. There could be specific terms and conditions for it too.
So, before you hire any agency, do not forget to inquire about the support and maintenance services offered by them and its price.
What is the Team Structure that They Would Provide You?
Ask about the team structure offered by the company for your software development project. You can interview a potential team of software developers if you want to. You should do it to assess the capacity of the team. In general, a software development team consists of:
1. Requirement analyst
2. Project manager
3. UI/UX designer
4. Software developer
5. QA tester and engineer
Also, you need to convey your requirements clearly to the software development agency so that they can do justice to your project.
Ability of a Healthcare Software Development Company to Assist You For Expanding Your Software’s Features
The main goal of developing medical software is to increase the efficiency of your operations, automate them, enhance them, and last but not least: offer a better patient experience. Therefore, above all other things, you must check out the ability of the custom healthcare software development company to expand or scale-up the product as per your needs.
Areas of Use
Custom healthcare development is used in the following areas:
Telemedicine
Telemedicine is a flourishing branch for custom software development companies in the healthcare business. App development is crucial for telemedicine and healthcare providers because it facilitates teleconsultation and healthcare information. Mobile applications play a key role in sharing medical services and information among patients.
Healthcare portals and patient databases
There is a wide scope for a healthcare app or a patient portal that could compile and store the data categorically over long periods.
This type of storage of health data can be accessible by the doctors in the form of medical records when they are seeing the patient, even if it is the first time. One can pull the data off the EMR and EHR which maintains such a set of data records. To ensure the protection of the data, personal information is kept confidential and only between the patient and doctor, on the portals.
E-consultations and e-prescription
E-consultation is one of the latest practices in digital healthcare services. Mobile apps are developed that are compatible with both iOS as well as Android and are user-friendly.
Such applications enable patients to consult with the doctors remotely based on their healthcare needs and get e-prescriptions as well. They can also get online treatment plans for certain diagnoses through this. The healthcare software developers have similar solutions for virtual billing software and e-pharmacy management.
VR and AR healthcare software development
Since their initial release, Augmented Reality and Virtual Reality have been very helpful in medical care especially in the COVID-19 remote healthcare scene. Ran through a powerful technology stack, AR-VR enables the patient to feel and see how a treatment or a medical device works.
Big Data and AI solutions for healthcare
Healthcare is one of the Big Data industries. It manages the flow of large volumes of medical data daily. To ensure that the collected data is used well, healthcare services are now powered by AI.
Health tracking and fitness apps
Wearable technology is gaining immense popularity these days. The products include smartwatches and bands that could track heart rate, sleep cycles, number of steps walked, and many more. These kinds of applications built by expert healthcare developers are among the most downloaded on the internet.
Conclusion
Custom healthcare software is important for healthcare organizations to make their process easier as possible. The COVID-19 pandemic is further popularizing telemedicine, e-consultation, AI solutions, fitness, and other health applications.
I know choosing a suitable healthcare software development company is not easy, but if you follow the process mentioned in this article, you can get the best and top-rated software developers who create apps for the medical and health care industries.
I hope this article has guided you well to understand better about healthcare software development companies. However, if you have any queries or suggestions, please connect with us in the comments section below.
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Health Technology, Digital Healthcare
Article | August 21, 2023
Introduction
Top Upcoming Healthcare Supply Chain Trends to Know About
Immediate Access to Medical Supplies
Emphasis on Visibility and Tracking
Investment in Technologies
Artificial Intelligence
Cloud Computing
Data Analytics
Healthcare Supply Chain Management Solutions: Features and Significance
Why Is Supply Chain Management Software Gaining Prominence in Healthcare?
Closing Thoughts
Introduction
With the ever-evolving and changing nature of the healthcare industry, organizations are discovering new methods to eliminate waste, reduce costs, and prioritize patient concerns.
Despite the fact that the COVID-19 pandemic has shown the vulnerabilities of healthcare supply chains and caused shortages of personal protective equipment (PPE) and other essential medical supplies, it has served as a catalyst for innovation and digital transformation in healthcare supply chain management solutions.
Healthcare and medical organizations have learned the hard way to let go of the traditional ways of thinking, such as a mindset that prioritizes just-in-time supply chains and logistics optimization over everything else.
Tight, fragile supply networks and lousy inventory management have caused severe shortages of pharmaceutical and medical supplies in the past. However, with the emergence of innovative technologies and trends, now is the time to adopt a new mindset that emphasizes supply chain resilience, flexibility, and agility, making supply chains stronger and adaptable. This will enable healthcare spaces to handle unexpected spikes in demand and survive unpredictable disruptions brought on by pandemics, natural disasters, or cyberattacks in the future.
Top Upcoming Healthcare Supply Chain Trends to Know About
In recent years, healthcare providers have been concentrating on supply chain management solutions not only to increase the effectiveness of supply chain networks but also to gain more visibility into the entire supply chain.
With the goal of streamlining the ordering process, enhancing demand planning & inventory management, and informing purchasing contract decisions, healthcare providers have started to understand the potential of advanced healthcare supply chain solutions. Since then, these organizations have recognized the value of an efficient and dependable supply chain as a critical competitive differentiator.
A substantial rise in medical and healthcare spending is being witnessed across the globe due to the rapidly increasing number of various diseases and conditions, such as chronic ailments, infectious diseases, and genetic disorders. According to a study, the national health expenditure in the U.S. reached US$ 4.1 trillion in 2020, including the spending of US$ 829 billion on Medicare and US$ 671 billion on medical aid.
Hence, healthcare organizations, manufacturers of medical devices, and other entities participating in the medical supply chain are investing in innovative supply chain and logistic solutions to provide optimal and timely treatments to patients.
Innovation is not only crucial for lowering operating expenses and simplifying business processes, but it is also necessary for providing superior care to patients and enhancing clinical outcomes. Let's see some of the top healthcare supply chain trends that are revolutionizing the healthcare sector.
Immediate Access to Medical Supplies
Medical equipment and component shortages are not new challenges for the healthcare industry. Hospitals and other medical establishments have faced continual disruptions in the supply chain over the last decade, starting from personal protective equipment and medical device shortages to improper management of medical inventory. This was especially witnessed in the past two years, during the COVID-19 pandemic.
Healthcare producers previously adopted a strategy to either pay higher premiums for medical equipment or stockpile them on their balance sheets. However, the issue with this strategy was that during the acute and unprecedented shortage, fewer devices and parts were left to acquire and keep in inventory, which has compelled hospitals to adopt a more cautious supply chain strategy.
Medical establishments need a more diverse pool of suppliers and cannot only rely on just-in-time inventory ordering. Hence, a swift rise in inclination toward adopting sophisticated supply chain solutions is being witnessed across the industry to monitor certain suppliers' run rates. This enables modern healthcare organizations to create more resilient and robust hospital supply chains and provide immediate access to medical inventory.
Emphasis on Visibility and Tracking
One of the most prevalent healthcare supply chain trends witnessed across the industry is the growing focus on visibility and tracking. Obtaining medical supplies, equipment, drugs and others safely, timely, and accurately from the factory floor to patients is the responsibility of the healthcare supply chain. As the industry shifts to value-based care models, the healthcare supply chain is experiencing enormous pressure to increase visibility, decline costs, and improve outcomes.
With the advent of online shopping and the introduction of novel medical e-commerce platforms, manufacturers and suppliers of healthcare products are focusing on real-time tracking during transit and logistics operations. As a result, they are increasingly adopting advanced healthcare supply chain management software to enhance visibility, stream operations, and decrease delivery time.
Investment in Technologies
The efficient management of the healthcare supply chain is paramount for proper patient care and inventory control. The implementation of digital healthcare technology is an essential step toward the achievement of a higher level of efficiency in supply chain management.
Digital healthcare logistics and supply chain solutions have the potential to generate long-term value for healthcare providers, which is one of the main aspects driving the transformation away from the conventional healthcare supply chain. It is improving patients' access to care while making it more efficient, cost-effective, and secure. In addition to this, the integration of advanced technologies is assisting hospitals and healthcare providers in reducing operational costs and identifying appropriate growth opportunities. The following are the technologies healthcare organizations are investing in to strengthen their supply chain management
Artificial Intelligence
The healthcare supply chain trend that is paving the way in the industry is artificial intelligence (AI). It is the future of the healthcare supply chain. The integration of the technology assists in improving logistics efficiencies via quicker data processing, continuous process improvement, and accurate demand-supply forecasting.
By connecting historical data with external patterns that affect production, AI presents a chance to greatly increase the speed and precision of healthcare logistics and supply chain activities. In addition, it enables medical equipment manufacturers and suppliers to constantly record crucial operational data and preserve institutional expertise for future use.
Cloud Computing
Cloud computing technologies have played a significant role in transforming the healthcare supply chain management that is used today. It reduces expenses, shortens logistics operations, and increases data security by centralizing data and providing access to that data to numerous associated entities.
With technological advancements, cloud computing is anticipated to gain huge popularity in creating a resilient supply chain with a well-knitted network of healthcare providers, manufacturers, and suppliers. And also provides next-generation features, such as transport route optimization and automatic inventory management.
Data Analytics
Data analytics provides a broader range of in-depth information that can be used to make operational processes more effective, inventory management more strategic, and decisions more accurate. It also assists in transforming the healthcare supply chain by providing access to cutting-edge methods like data mining, predictive forecasting, and predictive analytics to foresee future events with precision, assisting healthcare providers in forecasting further demand and supply interruptions.
In addition to the increasing need for declining costs and transit time, drug manufacturers and healthcare aid suppliers are investing in advanced data analytics to assist them in visualizing the whole supply chain, including its pain points, inefficiencies, and strengths.
Healthcare Supply Chain Management Solutions: Features and Significance
The healthcare industry as a whole is thriving, and this growth is reflected in the more sophisticated and digital nature of healthcare supply chain management software. The solution helps medical facilities see the big picture by coordinating and integrating procedures that manage and control the flow of money, data, and items as a product or service, all the way from the point of production to healthcare spaces, allowing for more efficient care.
The primary goals of these supply chain solutions, such as healthcare logistics software, are to improve visibility and efficiency throughout the distribution network. In recent years, these goals have expanded to include the strategic objective of improving supply chain agility and resilience— to cope with times of uncertainty, shortages, and volatility in demand and supply conditions.
Getting supply chain management right in healthcare means that participating players will be able to effectively identify and resolve bottlenecks, possible interruptions, and other issues that arise anywhere along the end-to-end supply chain. As one of the features, these supply chain solutions have the potential to improve patient care and safety while reducing waste and wasteful expenses. Let's see a few more features of healthcare supply chain management software
Procurement Management
Logistics Management
Inventory Management
Order Management
Warehouse Management
Supplier Relationship Management
Why Is Supply Chain Management Software Gaining Prominence in Healthcare?
Due to increasing instances of medication and healthcare aid shortages, a strong need for modernizing the healthcare supply chain is being experienced by numerous hospitals, drug manufacturers, and suppliers. In addition, the growing use of medical e-commerce is further increasing the complexities in the inventory and logistics operations, making it difficult for the players mentioned above to provide timely delivery, reduce wastage, and ultimately save patients.
To counter these challenges, medical establishments are emphasizing adopting more advanced and resilient supply chain management solutions, which assist them in streamlining and automating routine manual processes such as logistics operations, planning, forecasting, and others. The following are more reasons to encourage healthcare establishments to adopt resilient supply chain management software
Logistics and Shipping Optimization
Reduce Cost Effects
Enhance Quality Control
Increase Flexibility
Better Collaboration with Suppliers
Reduce Inventory and Overhead Costs
Increase Output
Enhance Transparency
Decrease Delivery Time
Closing Thoughts
In today’s constantly evolving healthcare sector, medication manufacturers and hospitals are looking to adopt innovative solutions, such as healthcare logistics software, to eliminate waste, reduce costs, and improve patient care.
The growing integration of AI, predictive analysis, blockchain, and other technologies is playing a major role in modernizing the healthcare supply chain and streamlining operations by automating and improving decision-making abilities. As the healthcare supply chain trends discussed above keep on creating new roads in the industry, supply chain management solutions, such as healthcare logistics software, are anticipated to become a necessity in the future.
Thus, ahead-of-the-curve healthcare providers are seizing this instance as an opportunity to invest in cutting-edge technologies and shift towards using digital solutions to make their supply chains more robust and improve the flexibility of their logistics operations.
FAQ
What is Healthcare Supply Chain Management Software?
Ans: A healthcare supply chain management software assists medication manufacturers and hospitals in sourcing, tracking, quality control, and logistics by automating operations, enabling them to manage costs, time, and inventory by planning and forecasting trends.
What Are the Types of Supply Chain Management Software Used in Healthcare?
Ans: The most common types of supply chain management software used across the healthcare sector are
Logistics
Sourcing and Procurement
Inventory Management
Warehouse
Order Processing
Shipping
What Are the Key Performance Indicators of Supply Chain Management Software in the Healthcare Industry?
Ans: Key performance indicators of supply chain management software in healthcare are
Reduction in Cost
Enhancement in Customer Service
Time to Customer
Forecasting Accuracy
Flow of Logistics Process
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Future of Healthcare
Article | February 19, 2022
Anesthesia groups face major challenges in the aftermath of the pandemic: Financially strapped hospitals are increasingly unwilling or unable to pay anesthesia subsidies, and a shortage of qualified anesthesiologists and CRNAs is making recruitment extraordinarily competitive.
The good news is that anesthesia opportunities are plentiful in the ambulatory surgery center (ASC) market. As more inpatient procedures migrate to ASCs, anesthesia practices can help meet demand by working with hospitals and ASCs. A dual-contracting approach can help increase revenue, reduce operational risk, enhance recruiting leverage, and present opportunities for equity investments in ASC ventures.
Expanding ASC Case Mix
Multiple factors are driving increased ASC volume.Consumers have long been attracted to the convenience andfast turnaround timesASCs offer, and as the pandemic began to take hold and patients worried about becoming infected in hospitals, theirpopularityincreased.
But even before the pandemic hit, theuse of ASCs was growing,with the number of centers increasing 7.1% annually since 2016.1No doubt this was in part driven by Medicare restricting fewer surgeries to the inpatient only (IPO) setting. This year alone, Medicare is adding 11 orthopedic procedures to the ASC-approved list, including total knee arthroscopy (TKA) and total hip arthroscopy (THA).2Commercial payersare alsofuelingASC volume by promotingthis venue as a lower-cost option to members.Lastly, with more than 90% of ASCs at least partially owned by physicians,providers themselvesare driving moreprocedures to this setting.
Hospitals Become ASC Buyers
For years, hospitals viewed ASCs as direct competition and discouraged or even prohibited inpatient anesthesia practices from contracting with them. But that dynamic is changing as more hospitals become buyers or majority investors.
According to a recent survey, the percentage of hospitals and health systems planning to increase their investments in ASCs rose from 44% in 2019 to 67% in 2020, with 75% of 200-plus-bed hospitals already owning more than one ASC.3Hospitals view these investments as a way to enhance physician relationships and increase surgical capacity.
The Benefits of Practice Diversification
For anesthesia practices that elect to contract with both hospitals and ASCs, a key benefit is improved profitability, since average ASC case reimbursements are higher than average hospital cases due to better payer mix and more efficient room turnover. Groups that work with multiple organizations also reduce their institutional or operational risk by limiting their exposure to potential financial problems associated with a single contracted entity.
Practices likewise gain an edge when it comes to recruiting in today’s highly competitive anesthesiologist and CRNA market. One of the chief benefits of ASC involvement is being in a position to offer a better work-life balance by spreading call responsibilities across a larger physician call pool. The math is simple: If a hospital group has seven physicians, each must provide call coverage once a week. But if the group also contracts with five ASCs and brings on five additional doctors to staff the facilities, individual call responsibilities are reduced to once every 12 days.
The importance of mitigating call duties to improve the work-life balance for both experienced clinicians and new hires can’t be overstated, particularly as hospitals work to streamline OR throughput by increasing the number of surgical procedures. Groups can also explore a range of creative compensation approaches, including essentially selling call opportunities to newly hired or recent graduate anesthesiologists as additional avenues to attract qualified clinicians while easing the burden on senior anesthesiologists.
Equity Opportunities
Among the most intriguing aspects of ASC involvement is the potential for becoming an equity stakeholder in the business. Surgeons traditionally have been the primary drivers in creating ASCs, but new opportunities exist for anesthesiology groups, particularly if their hospital is buying an existing ASC or developing a new ASC venture and looking to diversify the ownership group.
The idea of anesthesia ownership isn’t as crazy as it might sound. Like surgeons, anesthesiologists are integral to the success of an ASC, and like surgeons, they get there early and stay late. It’s no secret that joint ownership can greatly improve relations between the practice and the hospital, since both are now working toward the same objectives.
Groups can also make more money. I met with a surgical group not long ago with a 49% ownership stake in a hospital. That equity generated an additional $80,000 per year for each physician partner. How much you can make, of course, depends on your specialty, your level of ownership, and the volume of business. But you’ll never know until you try.
Outside Expertise
The pandemic has unleashed numerous changes throughout healthcare, and where the dust will eventually settle isn’t entirely clear. But what is certain is that for organizations to remain viable, they’ll need to be flexible and look hard at nontraditional business opportunities. Contracting with both hospitals and ASCs represents one such approach for anesthesia groups.
If you’re interested in exploring this and other business possibilities but don’t know where to start, Change Healthcare can help. Our team of expert anesthesia practice-management consultants have an average of 18 years’ experience in the specialty. We can be engaged on a per-project basis or we can provide our consultant services as part of our turnkey anesthesia-billing solution.
Our anesthesia revenue cycle management services can be deployed either on our own proprietary anesthesia-billing platform or on your hospital billing system. Either way, we’ll provide seamless, end-to-end service.
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