Ambulatory Surgical Centers and Recovery Care Centers

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Ambulatory Surgical Centers and Recovery Care Centers A presentation to the House Health Innovation Subcommittee Megan Smernoff Senior Legislative Analyst January 25, 2017

Summary Overview of ambulatory surgical centers (ASCs) ASC literature review Overview of recovery care centers (RCCs) RCCs in other states 2

Ambulatory Surgical Centers Ambulatory surgery procedures performed in ASCs and Hospital outpatient surgery departments (HOPDs) In Florida, ASCs are not part of a hospital and provide same-day elective surgical care AHCA licenses and regulates ASCs under the same regulatory framework as hospitals 3

There were 3 million visits to Florida ASCs and HOPDs in 2015 ASCs generally perform low-risk procedures, e.g., Gastrointestinal endoscopy Cataract surgery Colonoscopy 432 ASCs and 218 HOPDs in Florida For 2015, AHCA reported 3 million visits to Florida ASCs and HOPDs ASCs: 53% of total visits HOPDs: 47% of total visits 4

ASC and HOPD charges total $37.9 billion in 2015 ASCs 24% of charges; HOPDs 76% Charges were primarily paid by Commercial insurance (41%) Medicare (29%) Medicare Managed Care, Medicaid Managed Care, and self-pay (23%) Average charge at HOPDs ($20,444) more than 3x average charge at ASCs ($5,561) 5

ASC research and literature review Review included 29 empirical studies and 1 qualitative study Studies grouped into three topic areas Impact of ASCs on hospitals and costs Patient access to services and surgery location Patient safety, clinical outcomes, and satisfaction 6

Impact of ASCs on hospitals and costs 23 studies compared ASCs to hospitals, including the impact of ASCs on hospitals Impact of ACSs on hospitals may be limited; ASCs can save money performing certain procedures 7 studies found ASCs had minimal impact on hospitals; hospitals reported overall lower growth rates in outpatient surgery volumes 5 studies suggested ASCs save money performing certain low-risk procedures 7

Patient access to services and surgery location 18 studies addressed ASC patient access to care No patterns identified studies not comparable due to varying types of patients, procedures, and other data Individual study findings indicated ASCs more likely to serve older patients ASCs benefit from healthier patients than HOPDs ASCs more likely in high population density/urban areas Types of procedures varied widely across the two outpatient settings 8

Patient safety, clinical outcomes, and satisfaction 9 studies; ASCs provide more timely service and have low rates of unexpected safety events Clinical outcomes for ASC patients compared with hospital patients varied 5 studies found shift in patient volume to ASCs not associated with additional hospital admissions or patient mortality 1 study found ASCs had a higher rate of unexpected hospitalization within 1 week after release than HOPDs, only for certain procedures 9

Recovery Care Centers Health care institutions providing postsurgical and post-diagnostic medical and nursing services for patients not expected to require intensive or critical care services Freestanding or attached to hospital or ASC Ability to transfer patients to RCCs allows ASCs to treat higher-acuity patients Did not identify research or studies on RCCs 10

Recovery care centers in other states 3 states have specific licenses for RCCs Arizona, Connecticut, and Illinois States typically limit RCCs to patients not expected to need critical care Length of stay varies Illinois: 48 hours; Connecticut: 3 days Other states include extended recovery stays in ASC definition; recovery care limited to 24 hours E.g., Utah: extended recovery care services provided by ASCs not to exceed 24 hours 11

Questions? THE FLORIDA LEGISLATURE S OFFICE OF PROGRAM POLICY ANALYSIS & GOVERNMENT ACCOUNTABILITY OPPAGA supports the Florida Legislature by providing data, evaluative research, and objective analyses that assist legislative budget and policy deliberations.

Contact Information Megan Smernoff, J.D. Senior Legislative Analyst (850) 717-0532 smernoff.megan@oppaga.fl.gov Mary Alice Nye, Ph.D. Health and Human Services Staff Director (850) 717-0567 nye.maryalice@oppaga.fl.gov THE FLORIDA LEGISLATURE S OFFICE OF PROGRAM POLICY ANALYSIS & GOVERNMENT ACCOUNTABILITY OPPAGA supports the Florida Legislature by providing data, evaluative research, and objective analyses that assist legislative budget and policy deliberations.