TRENDS
BY DANIEL BEAIRD
Hospital-Based ASC Ownership Consumer-driven trends, value-based strategies and better physician relationships encourage transition to ASCs.
The healthcare sector has significantly consolidated in recent years. Large health
off-campus PBD payments to 70% of
systems have acquired smaller hospitals and the remaining hospitals have amassed exist-
the full OPPS rate.
ing outpatient facilities like urgent care, imaging locations and independent physician
The OPPS rule was ruled to be
practices as outpatient care has become more popular. This has limited inpatient days
invalid by a federal judge that same year,
and lowered hospital revenues, all while the healthcare sector tackles higher overhead
but the U.S. District Court of Appeals
and labor costs.
for the D.C. Circuit overturned the court’s ruling in 2020. The American Hospital Association (AHA) and the
Site-neutral payments
Association of American Medical
to continue. Healthcare staffs are encour-
CMS implemented the Outpatient
Colleges (AAMC) are opponents of the
aged to expand their abilities for a variety
Prospective Patient System (OPPS)
site-neutral payment policy, but the U.S.
of alternative care sites and reimbursement
rule in 2019, extending a site-neutral
Supreme Court declined to hear AHA’s
models are being restructured to meet the
payment policy to off-campus provider-
appeal of the U.S. District Court of
shift toward outpatient services.
based departments (PBDs). It reduced
Appeals decision in 2021.
The preference for outpatient care is set
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October 2022 | The Journal of Healthcare Contracting