Foundation Surgery Affiliates

2010 Management Guide

For SurgiStrategies magazine’s annual management guide, we have partnered with management companies serving the ambulatory surgery industry to bring educational case studies to our readers. In these tough economic times, physicians and administrators are searching for solutions to challenges that range from improving operations and boosting revenue streams, to recruiting physician partners and much more.

Adding Specialties to Increase Profitability

 Foundation Surgery Affiliate of Huntingdon Valley, Pa. is an AAAHC accredited, multi-specialty ASC that opened in 2003. With four operating rooms, two procedure rooms and 19 surgeon partners, this 18,000-square foot facility was profitable; however, there was still a tremendous opportunity for growth through increasing OR utilization and case volume.

“We continually strive to develop new tools and methods that will enhance the profitability of our centers while also adapting to the changing outpatient surgery environment,” says FSA chief operations officer Thomas A. Newman. He recalls the FSA specialty and case analysis:

1. Take inventory. FSA creates a checklist of all specialties that can be performed at an ASC.
2. Analyze and evaluate. Management performs an extensive cost/benefit analysis, weighing equipment and labor costs against typical revenues provided by the specialty.
3. Choose. Determine which specialty is most worth pursuing.
4. Recruit surgeons. Utilize data collected in steps 1-3 and tap existing surgery partners as a primary resource for new partner candidates.

In the case of Huntingdon Valley, a surgeon partner suggested that the center consider adding fertility as aspecialty. Based on that recommendation, FSA performed steps 2-4. During the first month of adding fertility, case volume increased 12 percent and overall revenues increased by more than 25 percent. As a result of this exercise, FSA formalized the process and rolled it out to all of its centers.

“Our center was already doing quite well when FSA performed the specialty and case analysis and presented the impact of adding gynecology partners specializing in fertility,” says center administrator Robert Puglisi. “Now, return is even higher as a direct result of adding our reproductive medicine partners.”

Larry Barmat, MD, one of the center’s fertility partners, says, “Reproductive medicine is almost tailored to the ASC environment because the procedures are of short duration and low risk, thereby lending them to being done in an outpatient setting.”

Chairman of the board Robert Mannherz, MD, says, “The addition of reproductive medicine has been positive for the center on several levels. It has increased the utilization of the center and our cash flow, as well as diversified our services to patients.”

SurgiStrategies • February 2010 • www.surgistrategies.com