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2007 Health Confidence Survey

In November 2007, the 10th Annual Health Confidence Survey (HCS) was released. The “2007 Health Confidence Survey: Rising Health Care Costs Are Changing the Ways Americans Use the Health Care System” is an annual survey to assess the attitudes of the American public regarding the U.S. healthcare system.

Key findings include:

1. Most Americans are getting hit with higher health costs.
2. More than six in 10 Americans with health insurance coverage (63 percent) report an increase in the costs of their plan in the past year. These higher costs have increasingly caused the following results:
3. Try to take better care of themselves (81 percent in 2007; up from 71 percent in 2005) 
4. Talk to the doctor more carefully about treatment options and costs (66 percent in 2007; 57 percent in 2005) 
5. Go to the doctor only for more serious conditions or symptoms (64 percent in 2007; 54 percent in 2005) 
6. Delay going to the doctor (50 percent in 2007; 40 percent in 2005) 
7. Not fill or skip doses of their prescribed medications (28 percent in 2007; 21 percent in 2005) 

The higher costs are reportedly hurting the respondents’ household finances. In particular, the results indicate that increased healthcare costs have resulted in a decrease in contributions to retirement by 30 percent and other savings by 52 percent. Twenty-nine percent reported difficulty in paying for basic necessities and 36 percent reported difficulty in paying other bills as a direct result.

Poor ratings for the healthcare system: Six in 10 rate the healthcare system as fair (29 percent) or poor (30 percent). Many respondents report the healthcare system needs a complete overhaul (24 percent) or requires major changes (47 percent).

Employer mandate: More than nine out of 10 (91 percent) of those surveyed support an employer mandate for health coverage benefits. Moreover, 42 percent believe that all employers — regardless of size — should be included in a mandate requiring them to provide and contribute to health insurance coverage for their workers.

For more information, visit www.ebri.org/pdf/notespdf/EBRI_Notes_11a-20071.pdf. 

TASCS Names New Executive Director

The Texas Ambulatory Surgery Center Society (TASCS) Board of Directors announced that the Founder of the Austin, Texas-based society, Woodrow (Woody) M. Moore, will take over as the executive director to the 140 facility member advocacy organization. John M. Pike, TASCS’ outgoing executive director, left the organization to pursue other opportunities.

During Pike’s term, the organization added over 100 facility members, now representing 42 percent of Texas’ licensed ASCs as “The United Voice of the ASC Industry in Texas.”

Moore adds, “Among John’s other accomplishments, he planned the transition of the organization to 501C-6 status and along with TASCS’ Legislative Council, he formed the Friends of Ambulatory Surgery in Texas PAC (FAST-PAC).”

Woody Moore is also founder of The Physician’s Advocate, an independent healthcare developer of physician-ventured services. He will continue to manage the company’s day-to-day operations.

In his role as TASCS executive director, Moore reports to a 14-member board of directors and intends to broaden the TASCS scope to increase entrepreneurial, clinical initiatives and educational offerings beyond current legislative advocacy initiatives. These strategies will include TASCS serving as a data repository for use in legislative advocacy and benchmarking, the formation of a TASCS educational affiliate (ASC University) for busy professionals, and deepening its alignment with ASC Association (formerly FASA) and AORN. Moore also plans to create a budget surplus to support legislative advocacy and FAST-PAC activity in advance of the 2009 Texas legislative session.

Costs Rise Faster Than Revenue in Medical Group Practices 

Operating costs rose faster than revenue in many medical group practices in 2006, according to the Medical Group Management Association (MGMA) Cost Survey: 2007 Reports Based on 2006 Data. The two reports are focused on multi-specialty and single specialty practices.

Key findings include:

• OB/GYN groups experienced a 2.3 percent bump in median total medical revenue per full-time equivalent (FTE) physician, but their median total operating cost per FTE physician rose 7.1 percent.
• Multi-specialty practices fared about the same — a 7.4 percent cost increase outpaced a 1.8 percent rise in revenue.
• Cardiology practices posted a 0.7 percent decrease in median total medical revenue and a 3 percent increase in total operating cost.
• Family practice fared about the same with a 0.65 percent decline in revenue and a 2.1 percent bump in cost.
• General surgery groups reported a decline in revenue of nearly 2.9 percent and a 1.2 percent increase in cost.
• Orthopedic surgery practices experienced a 2.8 percent rise in median total medical revenue and a 2.3 percent increase in costs.
• Pediatric practices saw a 15.8 percent bump in revenue and a 10 percent rise in costs.

“This year’s data show that the disturbing trend of operating costs rising faster than revenues continues unabated,” notes William F. Jessee, MD, FACMPE, president and CEO of MGMA, in a press release. “The disparity between practices’ costs and revenues is fast approaching the breaking point.”

For more information, visit www.mgma.com. 

President and CEO, One of 30 Most Influential Leaders in Sterile Processing

Spectrum Surgical Instruments Corp. president and CEO, Rick Schultz, was recognized as one of 30 Most Influential Leaders in Healthcare Sterile Processing. Schultz has authored many articles designed to educate clinical and processing personnel about the care and handling of surgical instruments and authored the textbook, “Inspecting Surgical Instruments; An Illustrated Guide,” which has been developed into a national certification program. His latest publication, “Official Guide: Maintaining and Cleaning Surgical Instruments,” has been distributed worldwide. Schultz lectures around the country, and his past recognitions include the Distinction of Honor award, Educator of the Year award by IAHCSMM and American Hospital Association’s Educator of the Year.

Study Notes Impact of ASC Growth on Hospital Volume

The Atlanta Veterans Affairs Medical Center released a study published in the summer 2007 issue of Inquiry that examines the association of freestanding ASCs with hospital surgery volume. Researchers used data from the 2002 Medicare Online Survey Certification and Reporting System and the American Hospital Association Annual Surveys of Hospitals.

The researchers found that from 1993 to 2001, the number of ASCs per 100,000 population in metropolitan statistical areas (MSA) increased by 150 percent. During the same period, hospital outpatient surgeries increased 28 percent, while inpatient surgeries decreased by 4.5 percent. MSA and year fixed-effects regression analyses suggest that an increase of one ASC per 100,000 people was associated with a 4.3 percent reduction in hospital outpatient surgical volume, but was not associated with inpatient surgical volume.

Reference 1. Bian J, Morrisey MA. Free-standing ambulatory surgery centers and hospital surgery volume. Inquiry. 2007 Summer;44(2):200-10.

CMS Offers Coding Tip Sheet for Physician Quality Reporting

The Centers for Medicare & Medicaid Services (CMS) have developed a tip sheet to assist eligible professionals participating in the Physician Quality Reporting Initiative (PQRI) with reporting accuracy. Successful participation in PQRI is dependent on accurate submission of information provided on Medicare claims, according to the agency. This new resource provides helpful tips on the PQRI reporting process and is available on the PQRI Web page at www.cms.hhs.gov/PQRI/Downloads/2007PQRITipSheet.pdf.  

NEWS GROWTH

Virtua Unveils Plans for Healthcare Complex of the Future

Virtua Health, headquartered in Marlton, N.J., released its plan for the development of a 125-acre healthcare campus that will contain a new hospital and a comprehensive regional ambulatory center. The new facilities have been designed to handle a growing number of patients and to accommodate future technologies, according to a Virtua press release.

The new medical campus will be located on 125 acres of land. The $400 million project will result in a 660,000-square-foot digital hospital with 376 beds. An additional $120 million is expected to be spent by developers who will construct a 300,000-square-foot regional outpatient center to be located adjacent to the hospital. The regional outpatient center adjacent to the hospital will include an ASC, pediatric specialty center, cancer center, women’s imaging center, diagnostic services, rehab services, metabolic center, osteoporosis center, pain management services and physician offices.

“This new healthcare complex represents the transformation of the way healthcare is delivered,” says Richard P. Miller, president and CEO of Virtua Health. Every aspect of the design focuses on patient safety and the delivery of high quality care. We have incorporated the most advanced technologies and made accommodations for technologies not yet developed. Most importantly, the design accommodates patient comfort, family space and a warm, healing environment.”

Additional amenities will include flat screen monitors in every room that provide patients with Internet access and e-mail, patient education and entertainment. The system will also enable them to order meals, have room temperature adjusted and reach a nurse. Retail outlets on the main floor will provide goods and services related to medical needs and gift items. Exterior gardens will contain dining areas, walking paths and meditation areas.

Virtua is scheduled to break ground before the end of the year and the campus is scheduled for completion by late 2010.

Proposal Sent for New ASC for URMC

The University of Rochester Medical Center’s Strong Memorial Hospital submitted an application to New York State’s Department of Health to open and operate an off-site ambulatory surgical center (ASC). If approved, the 52,000-square-foot facility would house 10 operating rooms and two procedure rooms. A $13 million investment is necessary to outfit the ASC with state-of-the-art surgical equipment, according to URMC officials.

The proposal received the unanimous backing from both the Finger Lakes Health Systems Agency and the Community Technology Assessment Advisory Board. According to Strong Memorial Hospital CEO Steven I. Goldstein, Strong Memorial’s 33 operating rooms run at capacity each day, making it increasingly difficult to accommodate both its inpatient and outpatient cases.

NewHope Bariatrics Opens New Weight Loss Surgery Center in Kansas City

NewHope Bariatrics is opening its second ASC in Overland Park, Kansas. The center will focus on the treatment of obesity through adjustable gastric banding. The center’s director is Stephen Malley, MD, a leading bariatric surgeon who has performed more than 750 LAP-BAND® System procedures and serves as a LAP-BAND surgical proctor for Allergan, Inc., the product’s manufacturer.

The NewHope Bariatrics Surgery Center will offer a comprehensive program beginning with extensive education, pre-surgical consultation and financial counseling, and continuing through aftercare programs focused on long-term clinical support and access to a community of patients and healthcare professionals.

For more information, visit www.newhopebariatrics.com. 

New Healthcare Campus for Bethlehem Township in Illinois

St. Luke’s Riverside Medical Center broke ground in September 2007. The planned first phase includes a 400,000-square-foot outpatient clinic and cancer center scheduled to open in the fall of 2009. The first phase also includes construction of an ASC, an urgent care center, two medical office buildings, state-of-the-art imaging equipment and a diagnostic pavilion — all estimated at more than $100 million. The second phase will include a hospital and an education center. Hospital spokeswoman Susan Schantz, did not disclose the total cost to develop all 202 acres.

St. Luke officials say that the facility will be the region’s first “green” healthcare campus using environmentally friendly building materials, energy-efficient lighting and temperature control, and grounds free from artificial fertilizers and pesticides. A 900,000-square-foot mall is proposed for the other side of Route 33 from the new campus.

OrthoIndy and the Indiana Orthopaedic Hospital Announce Groundbreaking of New Facility

OrthoIndy and the Indiana Orthopaedic Hospital broke ground in October in Brownsburg, Ind. for its new 38,000-square-foot, $15 million state-of-the-art facility. The new facility, OrthoIndy West, will include 18 exam rooms, two ORs, physical therapy and a MRI. The facility is scheduled to open fall 2008.

For more information, visit www.orthoindy.com. 

Indiana’s Hamilton County to Receive State’s First Freestanding Emergency Department

St. Vincent Medical Center Northwest is expected to open in the fall of 2008, equipped with a freestanding emergency department (ED), a helicopter pad and an ambulatory surgery center, according to hospital spokesman Johnny Smith. A 26-acre site will hold the 120,000-square-foot outpatient health center.

The health center’s 15-bed emergency department is designed to screen and stabilize patients before sending them to a hospital in Indianapolis, Anderson or Carmel if in need of further treatment, Smith explains. The freestanding ED will be equipped with a helipad for air medical transportation by DoveFlight.

The new medical office building will include a sleep center — with adult and pediatric rooms — primary care, pediatric, women’s, rehabilitation, mental health and older adult services. Digital diagnostic imaging capabilities such as MRI, CT scanners, ultrasound and X-rays will be available, along with laboratory services.

More than 35,000 patient visits are projected within the first year of operation for the $42 million outpatient development.

$1 Million Grant Awarded to New ASC

The Economic Development Administration (EDA) of the U.S. Department of Commerce awarded a $1 million grant to support construction of a state-of-the-art ASC at the University of Texas Health Science Center, San Antonio.

“We are grateful that the EDA continues to be a strong partner with the Health Science Center in ensuring the success of its teaching, research, patient care and service missions,” notes Francisco G. Cigarroa, MD, president of the Health Science Center. Construction of the $3.9 million ASC is scheduled to be complete in 2009.

INDUSTRY EVENTS

January 2008 

Webinar: CMS Survival Series 
Part IV: ASC Advocacy 
Hosted by today’s surgicenter magazine 
Featuring Kathy Bryant and Rob Schwartz from ASC Association (formerly FASA) 
Jan. 16 at 2 p.m. EST 
www.surgicenteronline.com   

ICT Conference on Professional Development 
Jan 15-18 
San Diego, Calif.
www.ictconference.com 

American Academy of Cosmetic Surgery (AACS) 
Jan 17-20 
Orlando, Fla.
www.cosmeticsurgery.org 

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