Over the last two decades uses of surgery centers have grown across the county and were heralded as a more efficient, lower cost option in the performance of routine outpatient procedures. However, the business model of generating high profit by controlling operating costs has not always lived up to its billing.

Due to the ongoing evolution of the health care industry, insurance companies and other 3rd party payers have reduced reimbursements, causing some surgery centers to go out of business and others to become far less profitable.

As an operator of a surgery center, it is important to adjust your business model in order to adapt to this new and ever changing environment. Business savvy operators can respond in several ways:

  • Increase the amount charged for services it provides, or discontinue the practice of non revenue generating or less profitable procedures.
  • Increase volume by negotiating discounts with insurance providers.
  • Proactively reduce costs for all non-patient care related activities such as back office billing and claims processing.

With the reduced amounts insurance companies are willing to reimburse surgery centers for their services because of lower overhead, hospitals are having to aggressively compete with surgery centers for business in some markets.

By outsourcing non patient care related tasks such as medical billing and accounts receivable recovery, surgery centers can reduce salary overhead and improve revenue cycle management. Through efficient oversight of the revenue cycle by medical billing specialists, revenue recovery initiatives can result in revenue increases of more than 20% to 30%.