A comparative study of financial performance of freestanding ambulatory surgery centres and hospital-based outpatient departments: 1997-2004

Abstract

We compared financial performance of freestanding ambulatory surgery centres (ASCs) and hospital-based outpatient departments (HOPDs). Patient-level ambulatory surgery data (1997-2004) for the state of Florida were assembled and analysed. We used a pooled, cross-sectional design. We applied multiple regression models to study pricing differences for freestanding ASCs and HOPDs. Substantial charge differences exist for patients undergoing the most common outpatient procedures, and that these differentials are in favour of freestanding ASCs over HOPDs in the majority of studied procedures. These differences in charges are large enough to presume that they may translate into similar difference in actual costs. Although previous research does not show a clear 'winner' (neither ASCs nor HOPDs) in terms of quality outcomes, healthcare policymakers, payers, and patients may be led to look more carefully at charge and cost data in their contracting processes, or choosing a certain provider of outpatient services.