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Study shows orthopedics owning an ASC see costs rise

Ambulatory Surgery Reimbursement Update, August 16, 2005

A recent survey indicates that orthopedic practices saw a larger percentage increase in costs than they did in revenue between 2001 and 2003. The difference was even more pronounced for practices that wholly owned an ambulatory surgery center (ASC).

The study, conducted by the Medical Group Management Association (MGMA), indicated that orthopedic practices with wholly owned ASCs experienced a 14.3% growth in median total medical revenue, while those that only own a stake in them experienced a 23.9% growth during the three-year period of 2001 to 2003.

But practices that owned ASCs experienced a 37.2% increase in cost growth, while those without a wholly owned ASC saw only a 24.2% increase in costs.

Results from the study, the Cost Survey for Orthopedic Practices: 2004 Report Based on 2003 Data, also indicated that diagnostic radiology, magnetic resource imaging, and physical therapy were the ancillary services that brought in the biggest revenues for orthopedic practices in 2003.

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