Future of the Industry Predictions for 2008 by mirit35

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									                                                                Volume Thirteen • Fall 2007


                 Future of the Industry: Predictions for 2008


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       ince the inception of the first ASC              Frank Chapman is the Chief Operating Officer of          standard diagnostic and therapeutic procedures,
       which opened in 1970, the                        Asheville Gastroenterology Associates. Mr. Chapman       but physicians must prepare to incorporate more
                                                        holds one of two ASGE seats on the Board of Directors    advanced procedures as the technology becomes
       endoscopy center marketplace has
                                                        of the Association for the Accreditation of Ambulatory   available.”
seen a lot of changes during its evolution.             Health Care (AAAHC) and has been elected to a three
It is for certain that 2007 brought                     year term on the AAAHC’s Governing Board. He is a        Bergein F. Overholt, MD, a director of AmSurg since
profound changes to the marketplace                     trained and active AAAHC surveyor. Mr. Chapman is        November 1992, has served as President of
and to many of the players within that                  the sole non-physician member of the ASGE’s Practice     Gastrointestinal Associates, P.C., a gastrointestinal
space. In the following article,                        Management Committee and an immediate past               specialty group, and a medical director of The
                                                        president of the Medical Group Management                Endoscopy Center, Knoxville, Tennessee. Dr. Overholt
EndoEconomics invited key leaders to
                                                        Association’s (MGMA) GI Administrator’s Assembly.        also serves as Medical Director for AmSurg and
share their predictions for the industry in
                                                                                                                 Medical Director of the Laser Department at the
2008. Each respondent’s answer                                                                                   Thompson Cancer Survival Center in Knoxville,
                                                                          “Due to the increasingly
provides his perspective of the market.                                                                          Tennessee. He is also a member of the Board of
                                                                          difficult reimbursement envir-
                                                                          onment and the need to                 Directors of Maryville College in Maryville, Tennessee.
                    “I foresee a renewed interest
                                                                          generate more procedures, we
                    by both gastroenterologists
                                                                          are seeing an increased                                     “2007 was a watershed year for
                    and hospitals in pursuing the
                                                                          interest in GI centers seeking                              the ASC market with continued
                    delivery of GI services
                                                        Jonathon Vick     corporate partners with                                     pressure from the hospitals that
                    collaboratively instead of
                                                                          resources to help centers                                   are responding to the shift from
                    competitively. Doctors still
                                                        grow. At the same time, there has been an                                     HOPD to ASCs. As we transition
William Thompson need hospitals and hospitals           increase in the number of ASC companies with                                  from 2007 to 2008, we sit
                    still need doctors. Most
                                                        these resources that have an interest in                 Philip Grossman, MD, with baited breath awaiting
importantly, patients need doctors and hospitals                                                                 FACP, FACG, AGAF the final legislative onslaught
                                                        partnering with GI centers on a majority or
to work together to ensure the delivery of care
                                                        minority basis. Due to this competition, the             that threatens the very economic viability of many
that is safe, effective, and cost-efficient.”
                                                        purchase multiples being offered are very                ASCs throughout the country.
William Thompson is President and Managing
                                                        attractive, and we see transactional activity with
Partner of Hall Render Killian Heath & Lyman, PSC. He   GI centers remaining strong through 2008.”               My predictions for 2008 include the closure of
concentrates his practice on financial relationships                                                             some ASCs and some mergers to increase
among health care providers, including hospitals,       Jonathan C. Vick, the Founder and President of ASCs      economies of ASCs. I expect to see a
physicians, and health systems. He provides advice      Inc., has assisted in development, merger, and           restructuring of contracts with managed care to
and counsel on a national basis regarding mergers       acquisition transactions for over 150 physician-         break the links to percent of Medicare, and
and acquisitions, joint ventures, reimbursement         owned ambulatory surgery and endoscopy centers           finally, the growth of many innovative services as
issues, and network integration. Mr. Thompson also      since 1984. He founded and was a principle               my colleagues and I continue to provide first rate
                                                        shareholder of SurgiCenter Development Cor-
counsels clients on a number of state and federal                                                                care and service to patients while remaining
health care regulatory matters, including fraud and     poration in 1984 and Endoscopy Center Affiliates in
                                                                                                                 viable to serve in the future.”
abuse, the Stark Law, antitrust, tax-exempt, and        1994. Mr. Vick participated as a general partner for
compliance issues. He has been named in The Best        a national network of Medicare certified surgery and
                                                                                                                 Philip Grossman, MD, FACP, FACG, AGAF, holds
Lawyers in America under the Health Care Section for    endoscopy centers that were acquired in 1995. He
                                                                                                                 dual faculty appointments at the University of Miami
ten years running.                                      has extensive experience in ASC/EC development,
                                                                                                                 School of Medicine serving both as Voluntary
                                                        business planning, operations, valuations, and
                                                                                                                 Associate Professor of Gastroenterology as well as
                                                        mergers and acquisitions.
                  “For endoscopic ASCs, as we                                                                    Epidemiology and Public Health. He is Founder and
                  approach 2008, it is a time of                                                                 President of Erlan Medical Management, a consulting
                  contemplation and planning as                         “GI ASCs continue to provide             firm specializing in technology applications, quality
                  we all prepare for change of                          improved service and reduced             assurance and strategic planning. He has also earned
                  truly Darwinian magnitude as                          costs to patients and improved           Fellowship in the American College of Physicians,
                  we must adapt or die.                                 efficiencies and control for             American College of Gastroenterology and the
Frank J. Chapman Operational efficiency and the                         physicians. 2008 looms as a              American Gastroenterological Association. He serves
                  control of cost will impact                           year of change with increasing           as Medical Director and Chairperson of the Board of
infrastructure development as we prepare to             Bergein F.      government and third party               Kendall Endoscopy and Surgery Center. Dr. Grossman
weather a storm of known intensity but unknown
                                                        Overholt, MD
                                                                        efforts to lower payment for GI          also serves as Chief of Gastroenterology at Cedars
                                                                                                                 Medical Center in Miami.
duration.”                                              procedures in ASCs. In 2008, the core
                                                        procedures of the GI ASC will continue to be



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