HAVE YOU EVALUATED THE COMPETITION IN YOUR MARKET?
HAVE YOU EVALUATED THE COMPETITION IN YOUR MARKET?
Whether the ASC is a brand new entity, or has been established in the market for some time, it’s always sound practice to evaluate the market in terms of what it can yield in terms of projectable volume and new opportunities for growth. With more healthcare institutions looking to extend their reach and drive profits, it’s likely that new ASCs in the immediate geography may be the most potent threat. It follows then, that those who can most adroitly identify their market situations and best fill the market needs will enjoy the most sustained success.
Whether the ASC is a brand new entity, or has been established in the market for some time, it’s always sound practice to evaluate the market in terms of what it can yield in terms of projectable volume and new opportunities for growth. With more healthcare institutions looking to extend their reach and drive profits, it’s likely that new ASCs in the immediate geography may be the most potent threat. It follows then, that those who can most adroitly identify their market situations and best fill the market needs will enjoy the most sustained success.
Whether the ASC is a brand new entity, or has been established in the market for some time, it’s always sound practice to evaluate the market in terms of what it can yield in terms of projectable volume and new opportunities for growth. With more healthcare institutions looking to extend their reach and drive profits, it’s likely that new ASCs in the immediate geography may be the most potent threat. It follows then, that those who can most adroitly identify their market situations and best fill the market needs will enjoy the most sustained success.
Understand all your competitors
In any market, an ASC will face several types of competition, both directly and indirectly. Depending on the population makeup, existing ASCs may be entrenched in the market, and happily serving patients and enjoying referrals from hospitals and general practitioners. Depending on the size of the market, some hospitals may have diversified their offerings or spun off OR units under new DBAs to serve market needs and keep the profits “in house.”
Indirect threats are both harder to identify and more challenging to overcome. Indirect threats may include ASCs in adjacent markets – a town 50 miles away that may have a known ASC that is reputable in spinal procedures, for instance.
Understand all your competitors
In any market, an ASC will face several types of competition, both directly and indirectly. Depending on the population makeup, existing ASCs may be entrenched in the market, and happily serving patients and enjoying referrals from hospitals and general practitioners. Depending on the size of the market, some hospitals may have diversified their offerings or spun off OR units under new DBAs to serve market needs and keep the profits “in house.”
Indirect threats are both harder to identify and more challenging to overcome. Indirect threats may include ASCs in adjacent markets – a town 50 miles away that may have a known ASC that is reputable in spinal procedures, for instance.
Or different kinds of healthcare facilities, such as physical therapy or pain management centers. While these centers may not be performing surgeries, they are certainly occupying a subset of the potential patient population with medical services (for perhaps up to several years) before a surgical intervention becomes imminent. Also keep in mind that potential patients may be delaying or deferring surgery due to fear or financial limitations.
When marketing any ASC, it’s important to consider that there is a subset of prospects in the target group who may actively be avoiding surgical intervention for any number of reasons.
Get ahead of the financial transformations
Following on the list of indirect threats, the payor makeup in a market may be driving the success or hindering the proliferation of ASCs. In some cases, a large local employer may opt for a healthcare plan that does not cover elective surgeries or certain types of procedures. If the case volume at an ASC is comprised of procedures that fall under certain CPT codes, that facility may be facing an indirect competitive threat that is di cult to challenge, particularly if a self-pay option is prohibitive for the population makeup.
Further, as the healthcare industry moves towards value-based care, ASCs are challenged to outperform their near- field competitors on clinical outcomes, and the reimbursement structures will evolve accordingly. According to a recent paper published by Regent Surgical Health, “20 major health systems and payors pledge to convert 75% of business to value-based arrangements by 2020.”
This is both a macro and micro threat. As the national trends take root, driven by federal legislation and private sector migration, they will trickle into even the smallest markets, and ASCs will be facing the responsibility of responding to them in order to remain viable.
Or different kinds of healthcare facilities, such as physical therapy or pain management centers. While these centers may not be performing surgeries, they are certainly occupying a subset of the potential patient population with medical services (for perhaps up to several years) before a surgical intervention becomes imminent. Also keep in mind that potential patients may be delaying or deferring surgery due to fear or financial limitations.
When marketing any ASC, it’s important to consider that there is a subset of prospects in the target group who may actively be avoiding surgical intervention for any number of reasons.
Get ahead of the financial transformations
Following on the list of indirect threats, the payor makeup in a market may be driving the success or hindering the proliferation of ASCs. In some cases, a large local employer may opt for a healthcare plan that does not cover elective surgeries or certain types of procedures. If the case volume at an ASC is comprised of procedures that fall under certain CPT codes, that facility may be facing an indirect competitive threat that is di cult to challenge, particularly if a self-pay option is prohibitive for the population makeup.
Further, as the healthcare industry moves towards value-based care, ASCs are challenged to outperform their near- field competitors on clinical outcomes, and the reimbursement structures will evolve accordingly. According to a recent paper published by Regent Surgical Health, “20 major health systems and payors pledge to convert 75% of business to value-based arrangements by 2020.”
This is both a macro and micro threat. As the national trends take root, driven by federal legislation and private sector migration, they will trickle into even the smallest markets, and ASCs will be facing the responsibility of responding to them in order to remain viable.