ASCs reduce Medicare costs $4 billion annually

Editor's Note

A new analysis of Medicare payment data by KNG Health Consulting shows that ambulatory surgery centers (ASCs) reduced Medicare costs by $28.7 billion from 2011 to 2018, a savings of more than $4 billion each year.

The analysis also shows that, without policy changes, performing procedures on Medicare patients in ASCs is expected to reduce costs by an additional $73.4 billion from 2019 to 2028—with savings being driven by endocrine, cardiovascular, and orthopedic surgery.

The analysis also projects that a shift in percentage of total knees from hospital outpatient departments to ASCs will result in an additional $2.95 billion in savings between 2020 and 2028.

By 2028, the following five specialties are each projected to save Medicare more than $1 billion annually—eye and ocular adnexa, cardiovascular, nervous system, digestive system, and musculoskeletal.