Building an Outpatient Intervention Suite

Chapter 63 Building an Outpatient Intervention Suite



Technological advances in minimally invasive treatments for vascular diseases in the past decade have made it clinically acceptable to perform many peripheral endovascular interventional procedures on an outpatient basis. In recognition of that development, Centers for Medicare and Medicaid Services (CMS) has, since 2006, steadily increased the types of interventional procedures it allowed physicians to perform on an outpatient basis in the physician office setting, thus making it potentially viable economically for vascular surgeons to operate their own intervention suites in their offices.



Incentives


There are three powerful incentives for vascular surgeons to consider building their own intervention suite. The first is quality of the patient experience. The vascular surgeon has much more control over the patient experience, from scheduling of the procedure time, to the environment, to the amount of time with the patient before and after the procedure. By doing the intervention in the office, the vascular surgeon can make the environment much more comfortable and less intimidating to the patient. The surgeon can schedule treatments quickly without having to compete for room time with other physicians at the hospital.


The second incentive is productivity. Without having to travel to and from the hospital and having to wait for the operating room or catheterization room to be ready, the vascular surgeon can make much more efficient use of their time. The typical vascular surgeon wastes a lot of time waiting for procedures scheduled ahead of them to finish and for rooms to be cleaned before they can begin their procedures at the hospital. With an intervention suite in their office, the surgeon can see many more patients in a day.


Finally, in the face of declining professional fees, office-based procedures offer vascular surgeons an opportunity to increase their revenues by capturing the higher global fees that CMS and many other insurance companies pay for office-based procedures. A global fee is the fee that CMS and other payers pay to the physician for providing a service in the physician’s office. The fee reimburses the physician for professional services and the technical expenses of providing that service. The latter is equivalent to the technical fees that hospitals and ambulatory surgery centers receive for procedures performed in those facilities. The global fee can be substantially, higher than the professional fee, sometimes tenfold higher. The physician will incur more expenses for procedures performed in the office, which will have to be paid from this global fee. However, by managing the intervention suite well, the vascular surgeon has the opportunity to generate a higher income.



Considerations



Financial


Appealing as the incentives are, the vascular practice needs to carefully analyze whether the fixed and incremental expenses of having an intervention suite in the physician office makes financial sense before deciding to build one.


The first question is whether the office has a sufficient number of cases that could be handled in an outpatient setting. How many cases are currently handled elsewhere, such as in hospitals and surgery centers, that can be transferred to the office intervention suite? What are these cases and how much would they reimburse? What is the payer mix? Will the payers reimburse at the global fee rate? Medicare and most commercial payers will reimburse a global fee. However, Medicaid would only pay the professional fees for many interventional procedures in the office setting. Some health management organizations may also refuse to pay a global fee.


Although an interventional procedure in the physician’s office may reimburse much more than the professional fee that the vascular surgeon would get in a hospital for doing the same procedure, it is important to remember that the physician’s office has to pay for supplies, which can be expensive, for staffing (including nurses, scrub technicians, and x-ray technicians), for equipment, and for other variable and fixed expenses.


Unless the practice has sufficient volume and the right type of cases and payer mix to cover the overheads, and is able to manage its supplies and other expenses efficiently, the intervention suite could easily become an untenable financial burden. It is important to make a careful and realistic financial projection before proceeding with the implementation.




Space


The more space the practice can allocate to the intervention suite, the easier it will be to configure the space to work efficiently for the physicians and patients. At a minimum, the intervention suite needs:



In addition, spaces for reception area and work areas or offices for staff and physicians are necessary if the practice does not already have them.


The practice needs to consider how the patients flow through the facility and plan for adequate clearance in regard to doors and corridors, bearing in mind that patients may be moved on stretchers from the pre-op room to the intervention room and from the intervention room to the recovery room. The practice also needs to plan for nonambulatory patients arriving and departing the facility, and in particular access for emergency vehicles.


If a practice already has existing space that could be converted into an intervention suite, the build-out cost could be minimal. On the other hand, building a whole new facility could easily cost hundreds of thousands of dollars.



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Jul 1, 2016 | Posted by in CARDIOLOGY | Comments Off on Building an Outpatient Intervention Suite

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