Largest centers report lowest operating costs

Surgery centers performing 5,000 or more cases per year showed operating costs of $582.65 per case in 2004, compared with operating costs of $985.03 per case for centers that performed 1,999 or fewer cases per year, according to a new report from the Medical Group Management Association (MGMA) in Englewood, CO. (See chart.)

Medical and surgical supply costs per case ranged from $177.75 for the centers performing 5,000 or more cases per year to $234.32 for centers performing 2,000 to 2,999 cases per year, according to the Ambulatory Surgery Center Performance Report: 2004 Report Based on 2003 Data.

Total medical revenues per case ranged from $808.88 for the largest centers to $1,146.80 for the smallest centers, the report said. The survey received 148 responses out of 823 facilities that were sent the questionnaire, for a response rate of 18%. Facility ownership of respondents was:

• owned by group practice of multiple physicians, 36.49%;
• joint venture of several organizations, 33.11%;
• owned by multiple physicians in different medical practices, 22.97%;
• owned by one physician, 3.38%;
• owned by hospital or health system, 2.03%;
• other, 2.03%.

The Ambulatory Surgery Center Performance Report provides a summary of the financial performance and productivity of ambulatory surgery centers, including productivity measures of cases (patients) and procedures, case volume and total operating costs. This year’s report includes geographic sections, which provide area-specific information broken down by Eastern, Midwest, Southern, and Western areas. The report includes separate reporting for orthopedic, gastroenterology, and ophthalmology specialty data.

To obtain a full copy of the report, go to the MGMA web site: Click on "store" and search for the title. The cost of the item for nonmembers is $355 plus $7.50 for standard shipping.