BIG TRENDS + TAKEAWAYS FROM BECKER'S 21ST ANNUAL ASC/ SPINE CONFERENCE
The Future of Spine
Hear from Our Speakers
"I will tell you there was strong bipartisan agreement that we have a problem on our hands. And the problem involves Medicare Advantage and consolidation within healthcare systems and honestly even somewhat within physician groups as well, whether we're talking about being bought up by insurance companies or being bought up by large healthcare systems."
Adam J. Bruggeman, MD, CEO and surgeon, Texas Spine Care Center (San Antonio)
"For the past 15 years, I feel like I've been talking about value-based care coming in some meaningful way, but for us, it never seems to arrive. So we are actually having more success negotiating with our commercial payers. I think part of that is because we've done a much better job of getting granular with our data."
Vishal Mehta, MD, president and managing partner, Fox Valley Orthopedics (Geneva, Ill.)
"I think healthcare still is very much in the transactional environment, still very much a fee-for-service environment where we haven't really seen a big, aggressive push to value-based care. We're trying to reposition our company to be prepared for value-based medicine."
Michael C. Boblitz, CEO, Tallahassee (Fla.) Orthopedic Clinic
5 Big Trends
Consolidation and Integration: The healthcare industry is experiencing increasing consolidation, with spine surgeons and practices joining larger healthcare systems or forming strategic partnerships. Consolidation offers economies of scale, access to resources and opportunities for collaboration with other specialists. Integrated care models facilitate care coordination, streamline administrative processes and improve patient access to comprehensive spine care services across the continuum of care.
But consolidation trends are raising concern among some leaders. In a panel discussion, Adam J. Bruggeman, MD, CEO and surgeon, Texas Spine Care Center (San Antonio) shared a recent experience where he testified in front of the state budget committee on consolidation and its impact on the healthcare environment.
"I will tell you there was strong bipartisan agreement that we have a problem on our hands," Dr. Bruggeman said. "And the problem involves Medicare Advantage and consolidation within healthcare systems and honestly even somewhat within physician groups as well, whether we're talking about being bought up by insurance companies or being bought up by large healthcare systems."
Dr. Burggeman said he believes there's a growing desire to "attack the Medicare Advantage problem" — but the bigger question is how. He underscored the challenge in determining how to ensure competition and pay are appropriate.
Carlos Carrasco, president, Orlando (Fla.) Health Jewett Orthopedic Institute, and senior vice president, Orlando (Fla.) Health, discussed the importance of integration within his organization and how it's expanded options and access for patients.
"We've developed a large group of non-operative doctors, as well as tight integration with our therapists to be able to provide non-surgical options that patients really want," Mr. Carrasco said. "But I think what I'm particularly grateful for is the integration of the team. It's really across our system. I think that really gives the patient a much more integrated feel and a wide array of options so they can make their own choices. It really is how you put together physician talent with the access, ease of access and getting the patient not just an appointment, but to the right clinician at the right time — that's what consumers are looking for."
Robotics and Navigation: Robotics and navigation systems are revolutionizing spine surgery by enhancing precision and accuracy. Surgeons can now plan procedures with detailed preoperative imaging and execute them with robotic assistance or intraoperative navigation systems. These technologies improve the surgeon's ability to precisely place implants, navigate complex anatomy and achieve optimal patient outcomes. As the technology continues to evolve, its adoption is expected to increase.
In a panel session on strategies for physician investors, Adam Shurtz, administrator of Provo, Utah-based Riverwoods Surgery Center, discussed how his practice has benefitted from robotics investments.
"When robotics were first coming out, it was a tough pill to swallow as there aren't additional codes that you get for using a $1.5 million or $2.3 million robot, which is a little ridiculous for ASCs," he said. "But in hindsight, it was a good decision. It added more cases, more revenue, and it seems like most of our new orthopedic doctors are coming out with robotics training. Whereas our older physician group, they're better than a robot; they don't need one. But if you want to continue to grow, robotics for us has been a positive thing for our surgery centers and it helps us market for our communities. I think we're the only ASC in at least the Utah market that has a robotic program for total joints."
With higher patient demand for this technology, Helen Aretakis, administrator of Rochester Hills, Mich.-based Orthopaedic Surgical Institute, reiterated the importance of education and making patients aware of robotics offerings.
"Robots in your ORs, whether the physician uses them or not, I think patients need to know they're available," Ms. Aretakis said in a panel session on profitability in orthopedics, spine and pain management. "Patients are calling doctor's offices and asking if they're doing procedures robotically, whether it really serves their purpose or not. It is something that patients are asking for currently."
Biologics and Regenerative Medicine: Biologic agents and regenerative therapies are gaining prominence in spine surgery for their potential to enhance spinal fusion, promote tissue healing and reduce complications. Innovations such as stem cell therapy, growth factors and bone graft substitutes are being incorporated into surgical protocols to accelerate bone formation and improve fusion rates. Research in this field is ongoing, with the aim of developing more effective and targeted biologic treatments for spinal disorders.
"I really think it's an evolving area in medicine, and I think some of the snake oil aspect of it is kind of going away as we build more and more data," Samer S. Hasan, MD, PhD, department chair, orthopedic surgery, The Jewish Hospital (Cincinnati) and co-director, Cincinnati SportsMedicine, said in a panel discussion on orthopedic technologies with big potential. "We do see there is a place for perhaps enlarged joints in orthopedics, and it may actually start evolving into technologies that could replace, improve or minimize degenerative facet and degenerative disc disease. So I think that we're getting there, but there's still some evolution."
Reimbursement Policies and Payment Changes: Insurers are increasingly implementing prior authorization requirements, utilization management strategies and stricter denial policies to control costs. Spine surgeons must navigate these processes to obtain approval for procedures and stay compliant with payer guidelines. Reimbursement rates for Medicare and commercial payers haven't kept up with inflation, further thinning ASC margins.
In a panel discussion on orthopedic practices' strategic partnerships, Mick Perez-Cruet, MD, professor and vice chair of neurosurgery, Oakland University William Beaumont School of Medicine in Michigan, said payer relationships are a key opportunity to improve the bottom line — which he's seen firsthand in a unique partnership with Blue Cross Blue Shield of Michigan via the Michigan Spine Surgery Improvement Collaborative. As part of the initiative, Blue Cross Blue Shield of Michigan provides the collaborative with funds to pay for extractors that assess variables in patient charts, focusing on degenerative spine conditions. The result is what Dr. Perez-Cruet calls an "outcome platform" of more than 100,000 patients, which enables providers to reduce surgical site infections and lengths of stay because they're able to see outcomes of various practices throughout Michigan.
"Now, currently this is a program just in the state of Michigan," Dr. Perez-Cruet said. "I've tried to bring it nationally — I think CMS should adopt it because it's huge. We've literally saved Blue Cross Blue Shield hundreds of millions of dollars. Now, what's the benefit for me as a physician, who's saved this big conglomerate a lot of money? Well, we turn around and we get an uptick in our reimbursement for participation. I get an uptick of 4%, 5%, but it's an increase on reimbursement for each CPT code submitted. So my reimbursement for Blue Cross Blue Shield of Michigan is the best of any payer I have, and they 'gold card' you, meaning if you can show that you're doing the right thing for the right patients and so forth, they don't have to keep calling you — and guess what? I don't do pre-authorizations."
Value-Based Care and Alternative Payment Models: With a shift toward value-based care, spine surgeons are increasingly incentivized to deliver high-quality, cost-effective services. Alternative payment models, such as bundled payments and accountable care organizations, are becoming more prevalent, encouraging providers to focus on improving patient outcomes and reducing unnecessary healthcare spending. Surgeons who can demonstrate value through efficient care delivery, patient satisfaction and favorable outcomes will be better positioned to thrive in this evolving reimbursement landscape.
"I think healthcare still is very much in the transactional environment, still very much a fee-for-service environment where we haven't really seen a big, aggressive push to value-based care," Michael C. Boblitz, CEO, Tallahassee (Fla.) Orthopedic Clinic, said in a session on the competitive landscape for orthopedic supergroups. "We're trying to reposition our company to be prepared for value-based medicine."
Vishal Mehta, MD, president and managing partner, Fox Valley Orthopedics (Geneva, Ill.), shared a similar sentiment in another discussion on payer trends in spine and orthopedics.
"For the past 15 years, I feel like I've been talking about value-based care coming in some meaningful way, but for us, it never seems to arrive," Dr. Mehta said. "So we are actually having more success negotiating with our commercial payers. I think part of that is because we've done a much better job of getting granular with our data. We can track our costs — not just implant costs, but we can track our labor costs too and assign it to that case and actually show them that our costs are rising incredibly quickly."
Tech and innovation
The spine technology industry is experiencing rapid innovation and growth, driven by advancements in technology, surgical techniques and patient care. Minimally invasive procedures, robotics and navigation systems are revolutionizing spine surgery, offering improved precision, shorter recovery times and better patient outcomes.
Biologics and regenerative therapies are gaining prominence for enhancing spinal fusion and tissue healing. Motion preservation techniques are providing alternatives to traditional fusion surgery. Personalized medicine and predictive analytics are shaping treatment approaches, optimizing outcomes and minimizing risks. With a focus on value-based care and patient-centric solutions, the spine tech industry is evolving to meet the needs of patients and providers in a dynamic healthcare landscape.
In a keynote panel discussing the next five years of spine and ASCs, Scott Hannum, MD, president and medical director, EmergeOrtho - Coastal ASC, encouraged peer leaders to consider the value, patient and surgeon benefits, and potential impact on efficiency and outcomes when assessing new technologies — especially in light of upfront costs.
"There's a time-lag effect to understand these, and it's different for different technologies. So that's the tricky part," Dr. Hannum said. "In our ASC, we have robots for joint replacement. We had to weigh the cost versus the benefit of that. Luckily, we could leverage our volumes and leverage our relationships with our vendors to get those robots basically placed at our facility with volume promises of how many cases we were going to do."
New coverage policies may help ASCs' case for tech investments, too. "Now with Medicare approving total shoulders in the ASC, that's going to be a big frontier that's going to change a lot of guidance systems or augmented reality systems. I think those are going to have value," Dr. Hannum said.
In a discussion on technologies that will define the next generation of spine, Mark Testaiuti, MD, spinal neurosurgeon, partner and vice president, Coastal Spine in Mount Laurel, N.J., said he's looking to new clinicians to lead the way.
"I think the future of the next generation of spine care is in the hands of the residents and fellows that are coming out now and learning these techniques that are only going to make them better surgeons but not replace their surgical skills," Dr. Testaiuti said. "I think it's important to drive that home and for those of us who are willing to adopt these skills into our practices, it's worthwhile."
Outlook for the next 5 years
Over the next five years, the outlook for spine surgery is characterized by continued innovation, expanding access to care and a focus on value-based practices. More procedures will move into the outpatient space as technology advances and surgeons become more comfortable with ASCs. Payers will accelerate the transition in some markets, preferring the high-quality and low-cost setting for care.
"For my practice, I've kind of transitioned over the past few years into just primarily doing outpatient surgeries," Robert Tatsumi, MD, surgeon and owner of Oregon Spine Care in Tualatin, Ore., said in a panel session on spine and orthopedic industry disruptors. "Patients are demanding or really wanting to have the procedures done in an outpatient setting, whether it's the lumbar fusion, cervical disc replacement, cervical fusion. So it's about continuing not only to perform surgeries, but then for the next generation — the junior partners coming in — they are getting more comfortable with doing these similar procedures that were typically done in the hospital setting."
Spine surgeons will continue to desire autonomy and entrepreneurial opportunities. They'll be on the forefront of designing spine technology, advancing digital health platforms, leveraging data for precision medicine and growing their own practices. Private equity and other non-traditional buyers continue to see orthopedics and spine as potential investment opportunities.
Michael C. Boblitz, CEO of Tallahassee (Fla.) Orthopedic Clinic, noted the importance of acknowledging physicians' desires for autonomy and considering how it can factor into practice growth.
"We're getting a lot of physicians joining the group that are mid-career, hospital-employed physicians who feel like they don't have autonomy," Mr. Boblitz said in a discussion on the competitive landscape for orthopedic supergroups. "We're finding people that have that desire to have entrepreneurship and have ownership in their blood, sweat and tears, which is exciting. From a strategic standpoint, we've got to have a laser focus on growth."
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