Number Of Outpatient Surgical Centers In Pennsylvania Increases, State Report Shows

Main Category: Public Health
Article Date: 05 Dec 2007 - 5:00 PDT

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The number of outpatient surgical centers in Pennsylvania increased from 48 a decade ago to 232 in fiscal year 2006, state data show -- a trend some hospitals say is hurting their financial health, the Philadelphia Inquirer reports. According to a report released on Friday by the Pennsylvania Health Care Cost Containment Council, margins at surgical centers increased by 9.4 percentage points between FYs 2001 and 2004 and leveled off during FY 2006 at 21%.

The Hospital and Healthsystem Association of Pennsylvania on Thursday issued a statement saying outpatient surgical centers -- which perform surgeries that do not require overnight hospitalization, such as colonoscopies, cataract repairs and gastrointestinal endoscopies -- siphon off on healthiest, best-insured patients, making it more difficult for hospitals to make money. Association President and CEO Carolyn Scanlan said, "Data indicates that these facilities typically do not take those patients who cannot pay, treat far fewer Medicaid patients than do acute care hospitals and do not treat patients with complex conditions," adding, "The result is that our community hospitals ... treat the sickest and most needy patients."

According to the Cost Containment Council report, 2.95% of Pennsylvania outpatient surgery centers' net patient revenue came from Medicaid, compared to a June report that found 11% of hospital patient revenue came from Medicaid (Burling, Philadelphia Inquirer, 11/30). In addition, between 2000 and 2006, the percentage of all procedures performed at outpatient centers increased by 10.2% to 27.5%, according to the council's report.

The Pittsburgh Tribune-Review reports that physicians who own the centers say the facilities "are just as modern ... and have similar infection and complication rates as hospitals" but "have little of the overhead hospitals carry, allowing lower procedure prices -- plus they are licensed and inspected by the same regulatory bodies" (Stouffer, Pittsburgh Tribune-Review, 11/30).

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