3 Core Benchmarks for Every Surgery Center

Published by Becker’s Hospital Review

Chance Sherer, manager with VMG Health, discusses “must-have” benchmarks that every surgery center should use to track their progress.

Q: Benchmarking takes time, and small centers can’t benchmark everything. What are the can’t-miss benchmarks that really tell you how you’re doing?

Chance Sherer: When considering the “must haves” for ASC administrators to benchmark, I think of the some of the most important statistics that will impact the value of an ASC — case volume, case volume by specialty, net revenue per case, and earnings before interest, taxes, depreciation and amortization (“EBITDA”) margin. Case volume, case volume by specialty and net revenue per case benchmarks help [administrators] understand the specific components of net revenue for the ASC and can highlight areas of potential improvement in total revenue generation. EBITDA margin takes into consideration all the factors of revenue and operating expenses giving an indication of operating profitability. EBITDA provides an excellent metric of comparison because it eliminates the effects of financing and accounting decisions made by management. Please note that when comparing an ASC to the benchmarks mentioned above, an administrator should be careful to find themost comparable data set possible from a geographic, size, specialty mix, case volume, and payor mix perspective. For example, it would be inappropriate (and unhelpful) to compare a two operating room endoscopy center’s staffing hours per case in California to an eight operating room multi-specialty surgery center in Florida.

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