Ambulatory surgery centers will continue to record volume growth as hospital inpatient surgery volumes continue to shrink, a report from Moody's Investors Service shows.
Moody's senior analyst and vice president Ron Neysmith said in a new study this month that the lower costs for outpatient procedures in ambulatory settings are driving the transition away from hospital-centric care.
"Ambulatory service centers provide care without the high-cost infrastructures associated with hospitals," Neysmith said in prepared remarks. "More procedures can be done safely on an outpatient basis and outpatient facilities are reimbursed on average 57% of the hospital rate for similar procedures, so insurance payors, including Medicare, have increasingly been directing patients to lower-cost settings."
As a result, ambulatory service centers' same-store revenues have been growing in the low- to mid-single digits since 2007 while same-hospital inpatient surgeries have been flat (measured at a 0.22% annual decline) in the same period.