‘For ASCs to thrive, there must be a change’: The growing threat of pay disparity

Becker's Healthcare August 27, 2024
Patsy Newitt

ASCs are increasingly frustrated by the payment disparity between ASCs and hospitals, and many feel that without legislative change, surgery centers will falter.

Raghu Reddy, chief administrative officer at SurgCenter of Western Maryland in Cumberland, joined Becker’s to discuss why this disparity is the biggest threat to ASCs right now.

Editor’s note: This response was edited lightly for clarity and length.

Question: What is the biggest threat to ASCs right now?

Raghu Reddy: The biggest threat is payer reimbursement for ASCs. This topic has been beaten to the pulp lately, but we are not seeing any quantifiable results. Most ASCs struggle to get rate increases from the payers; with rising costs across most cost buckets, the profit margins...

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