Stryker, Zimmer shift strategies to capitalize on growing ASC market

December 24, 2020 Joint Replacement, Medical Devices, Orthopedics, Stryker, Surgery Center, Zimmer Biomet

Now that Medicare has caught up to private payers and opening up coverage policies to ambulatory surgery centers, experts see the procedure migration to ASCs accelerating.

The shift of procedures from the hospital to outpatient settings has gained momentum in recent years as commercial insurers boosted coverage and surgeons warmed to the idea of treating patients in ambulatory surgery centers.

Now that Medicare is catching up to this trend, experts expect the outpatient procedure migration to speed up with medical device companies like Stryker and Zimmer Biomet looking to capitalize on this shift, particularly in the orthopaedic space.

Bain & Company in a 2019 report, projected the percentage of hip procedures in ASCs to grow from just over 9% to 25% by the mid-2020s and knee procedures to grow from 10% to 30%.

While hospitals have opposed the moves, in part citing safety risks, Medicare seems to agree.

CMS recently finalized a Medicare rule that moved 11 services onto the ASC covered procedures list, including total hip replacements. The agency also finalized new criteria for the covered procedures list, which will cover about 267 musculoskeletal-related services when conducted in outpatient settings. In addition, CMS finalized a three-year phase-out plan of the inpatient only list.

Stryker has been looking to capitalize on the movement of surgeries as it has been accelerating over the last decade or so.

“This is definitely the continuation of a trend that started long ago, and we anticipate will continue well into the future,” said Nate Miersma, Styker’s senior director of ASC.

All of these moves continue CMS’ embrace of outpatient care, which the agency says can help lower overall healthcare costs while maintaining the same level of safety as an inpatient setting.

Analysts with Moody’s Investors Service wrote in a recent report that the final rule will ultimately “drive more highly profitable orthopedic procedures out of hospital inpatient settings.”

By Ricky Zipp | MEDTECHDIVE

Image Credit: Wikimedia Commons

READ MORE

About Peter Coffaro 510 Articles

Peter Coffaro is a growth-driven and strategic executive with over 25 years of progressive management success in the medical device industry. With a proven track record and recognized expertise, Peter has established himself as one of the top influencers in medical sales, as acknowledged by prestigious publications such as the World Journal of Orthopedics, Exponential Healthtech, and MedReps.com. Throughout his career, Peter has accumulated 10 years of combined sales management experience, excelling in various roles including Director, General Manager, Distributor, and Vice President. He has worked for industry-leading orthopedic companies such as Zimmer, DePuy, and Stryker, solidifying his deep knowledge and network within the field. Peter’s passion for innovation and emerging technologies led him to found OrthoFeed, an award-winning blog covering digital orthopedic news and emerging medical technologies. Through this platform, he stays at the forefront of the industry and contributes to the dissemination of valuable insights. Peter is a three-time Hall of Fame award winner at Johnson and Johnson, demonstrating his exceptional contributions and impact on the organization. His expertise extends to areas such as organizational development, business development, sales management, digital marketing, and professional education. Peter earned a B.S. degree in Biology and Chemistry from Northern Illinois University, further complementing his comprehensive understanding of the medical field. With his wealth of experience, strategic mindset, and dedication to advancing healthcare, Peter Coffaro is a valuable asset and leader in the medical device industry.