Inflation is putting pressure on operations at hospitals and ASCs alike –– and orthopedics are no different.
Earlier this year, three orthopedic groups made significant layoffs within just 30 days of another. Philadelphia-based Rothman Orthopedic Institute laid off 5% of its workforce, specifically citing inflation as one of the primary reasons behind their decision.
"[Inflation] impacts staff retention, patient access and overall operational efficiency," John Brady, CEO of Fox Valley (Ill.) Orthopedics, told Becker's. "As we move into more pay for value, it will be critical to maintain high-quality staff who can help us deliver the best care possible."
But achieving this balance comes at a cost, Dr. Brady said, one that could be challenging to meet in the face of declining reimbursement rates.
"It’s an investment we are willing to make but payers are going to have to recognize the changing economics and reimburse accordingly," Dr. Brady said.
Inflation also affects the cost of keeping pace with technologies that are defining the future of orthopedic care. While these technologies can drive growth for orthopedic practices, the investment equation is increasingly difficult to manage financially.
"I believe one of the biggest challenges facing orthopedics over the next 10 years is the payer community keeping pace with the rapid changes in the technology used to improve the lives of patients," Robert Carrera, COO of Raleigh, N.C-based Compass Surgical Partners told Becker's.
"The challenge for us as an industry will be educating the payers, CMS included, about the benefits of these new trends and technologies, so that they are approved for our setting and reimbursable at a rate that makes them available to our patient population," he added.