1 00:00:02,480 --> 00:00:05,919 Today's clinical providers and health care systems need 2 00:00:05,919 --> 00:00:08,559 a strategic partner that is focused on the 3 00:00:08,559 --> 00:00:10,419 evolution of health care delivery. 4 00:00:10,960 --> 00:00:13,919 At Surgery Partners, we are redefining the health 5 00:00:13,919 --> 00:00:14,580 care industry 6 00:00:14,884 --> 00:00:18,184 as a nation's leading independent operator of surgical 7 00:00:18,324 --> 00:00:20,425 facilities and ancillary services. 8 00:00:20,885 --> 00:00:24,565 With an extensive presence spanning over 180 9 00:00:24,565 --> 00:00:25,704 locations nationwide, 10 00:00:26,404 --> 00:00:28,760 our commitment extends beyond health care. 11 00:00:29,060 --> 00:00:31,399 It's about fostering successful partnerships 12 00:00:31,780 --> 00:00:33,859 that enhance the quality of care in the 13 00:00:33,859 --> 00:00:35,079 communities we serve. 14 00:00:35,700 --> 00:00:38,340 Surgery Partners is more than an operator or 15 00:00:38,340 --> 00:00:39,159 service provider. 16 00:00:39,539 --> 00:00:42,795 We are your strategic ally committed to transforming 17 00:00:42,935 --> 00:00:43,995 health care delivery. 18 00:00:44,534 --> 00:00:47,515 Learn more @surgerypartners.com. 19 00:00:50,454 --> 00:00:52,875 Hello, and welcome to the Becker's Healthcare podcast. 20 00:00:52,935 --> 00:00:54,854 My name is Chanel Bonger. Today, I am 21 00:00:54,854 --> 00:00:57,530 recording live at the twenty second annual Spine 22 00:00:57,750 --> 00:01:00,090 Orthopedic and Pain Management Driven ASC 23 00:01:00,469 --> 00:01:02,629 plus the Future of Spine Conference and sitting 24 00:01:02,629 --> 00:01:05,670 down with doctor Scott Hannum, partner at Emerge 25 00:01:05,670 --> 00:01:09,189 Ortho and president medical director at Brunswick Surgery 26 00:01:09,189 --> 00:01:11,109 Center. Doctor Hannum, thank you so much for 27 00:01:11,109 --> 00:01:13,105 joining me. Well, thank you for having me 28 00:01:13,105 --> 00:01:15,105 today. Perfect. Well, to get us started out, 29 00:01:15,105 --> 00:01:16,784 can you please introduce yourself and tell us 30 00:01:16,784 --> 00:01:18,405 a bit about your background and organizations? 31 00:01:19,265 --> 00:01:22,645 So I am a total joint orthopedic surgeon 32 00:01:22,704 --> 00:01:23,765 by training. 33 00:01:24,840 --> 00:01:25,659 This is my 34 00:01:26,040 --> 00:01:28,359 twenty seventh year in practice, which is hard 35 00:01:28,359 --> 00:01:29,020 to imagine. 36 00:01:29,560 --> 00:01:32,599 I am a partner at Emerge Orthopedics. Emerge 37 00:01:32,599 --> 00:01:34,540 Orthopedics is a large independent 38 00:01:35,159 --> 00:01:37,579 orthopedic super group in, North Carolina. 39 00:01:38,935 --> 00:01:40,935 We've been in existence, I think, about eight 40 00:01:40,935 --> 00:01:43,094 years now, and basically, it was a collective 41 00:01:43,094 --> 00:01:43,594 of, 42 00:01:44,375 --> 00:01:46,854 multiple different independent orthopedic groups in the state 43 00:01:46,854 --> 00:01:49,334 of North Carolina and Wilmington, North Carolina where 44 00:01:49,334 --> 00:01:52,295 I'm at, and then Raleigh, North Carolina, Winston 45 00:01:52,295 --> 00:01:53,994 Salem, Greensboro, Asheville, 46 00:01:54,530 --> 00:01:56,209 All came they came together to form that 47 00:01:56,209 --> 00:01:57,989 large independent orthopedic practice. 48 00:01:58,769 --> 00:02:01,189 Eight years ago, we started our own independent, 49 00:02:01,890 --> 00:02:03,670 physician owned surgery center, 50 00:02:04,290 --> 00:02:04,950 in Wilmington 51 00:02:05,409 --> 00:02:08,069 that, opened the door six years ago, 52 00:02:08,675 --> 00:02:10,355 right in the midst of COVID, which was 53 00:02:10,355 --> 00:02:11,814 perfect timing on our part, 54 00:02:12,675 --> 00:02:14,675 for a lot of chaos. But we were 55 00:02:14,675 --> 00:02:16,835 successful and we made it through. And, 56 00:02:17,235 --> 00:02:18,215 now we do, 57 00:02:18,915 --> 00:02:20,435 about 4,500 58 00:02:20,435 --> 00:02:23,495 surgeries a year and four operating rooms and 59 00:02:23,840 --> 00:02:25,219 very busy, very successful. 60 00:02:26,080 --> 00:02:27,219 So, I, 61 00:02:27,840 --> 00:02:30,180 have taken over the role and administrator 62 00:02:30,480 --> 00:02:33,520 and medical director of that facility in addition 63 00:02:33,520 --> 00:02:35,060 to my patient care duties. 64 00:02:35,935 --> 00:02:37,855 Got it. Got it. Well, now moving into 65 00:02:37,855 --> 00:02:39,855 the meat of the podcast a bit, can 66 00:02:39,855 --> 00:02:42,014 you talk about three top trends that you're 67 00:02:42,014 --> 00:02:44,895 watching today in health care and ASCs today 68 00:02:44,895 --> 00:02:45,715 in your role? 69 00:02:46,574 --> 00:02:48,895 Well, I think and again, I'm sure you've 70 00:02:48,895 --> 00:02:51,474 already had people comment on this. But, you 71 00:02:51,509 --> 00:02:52,810 know, the trend in orthopedics 72 00:02:53,189 --> 00:02:53,689 specifically 73 00:02:53,989 --> 00:02:55,209 and COVID was 74 00:02:55,909 --> 00:02:56,650 a a catalyst 75 00:02:57,509 --> 00:03:00,090 because we couldn't do surgery in the hospitals. 76 00:03:00,870 --> 00:03:01,769 But the trend 77 00:03:02,150 --> 00:03:03,689 of moving the majority 78 00:03:03,989 --> 00:03:04,650 of orthopedic 79 00:03:05,645 --> 00:03:08,284 surgeries to an outpatient setting was already happening, 80 00:03:08,284 --> 00:03:11,485 and then, again, COVID accelerated it. And so 81 00:03:11,485 --> 00:03:13,965 we're definitely seeing that. There's no question that 82 00:03:13,965 --> 00:03:15,745 we can safely and successfully 83 00:03:16,604 --> 00:03:17,104 do 84 00:03:17,979 --> 00:03:19,519 seventy, eighty percent 85 00:03:20,300 --> 00:03:22,860 of most, if not all, orthopedic surgeries at 86 00:03:22,860 --> 00:03:23,360 ASC. 87 00:03:24,139 --> 00:03:25,659 And so that's a good and a bad 88 00:03:25,659 --> 00:03:28,539 problem. It's a good for patients. Patient care 89 00:03:28,539 --> 00:03:29,199 is better. 90 00:03:30,355 --> 00:03:32,995 The outcomes are better. The risk of infections 91 00:03:32,995 --> 00:03:33,735 are lower. 92 00:03:34,355 --> 00:03:34,855 But 93 00:03:35,555 --> 00:03:38,275 we don't have the facilities to do that 94 00:03:38,275 --> 00:03:39,094 many surgeries. 95 00:03:39,555 --> 00:03:41,014 And there's a lot of regulations 96 00:03:41,395 --> 00:03:43,795 in many states in the country about opening 97 00:03:43,795 --> 00:03:44,295 ASCs, 98 00:03:44,780 --> 00:03:46,379 who can own them, how fast you can 99 00:03:46,379 --> 00:03:49,180 build them, etcetera. And so there's a there's 100 00:03:49,180 --> 00:03:50,639 a an access issue, 101 00:03:51,180 --> 00:03:51,919 which is 102 00:03:52,300 --> 00:03:54,300 a good and a bad thing for ASCs. 103 00:03:54,300 --> 00:03:56,860 So that's one huge trend is the increasing 104 00:03:56,860 --> 00:03:57,919 numbers in orthopedist 105 00:03:58,539 --> 00:04:00,400 pedic cases that have to be done. 106 00:04:00,754 --> 00:04:03,555 I think, you know, there's there's the the 107 00:04:03,555 --> 00:04:07,175 marketplace of it. The the federal government, unfortunately, 108 00:04:08,194 --> 00:04:10,514 does not reimburse surgeries to be done at 109 00:04:10,514 --> 00:04:12,354 an ASC at the same rate that they 110 00:04:12,354 --> 00:04:14,854 do at a hospital or even an outpatient 111 00:04:14,915 --> 00:04:17,259 hospital setting, which is inappropriate. 112 00:04:18,519 --> 00:04:20,699 It's the same surgery. It's the same care. 113 00:04:21,480 --> 00:04:23,660 If anything, we're more efficient and we're cheaper, 114 00:04:24,279 --> 00:04:26,300 with better outcomes. And so 115 00:04:26,759 --> 00:04:27,899 that is a huge 116 00:04:28,519 --> 00:04:29,019 lobbying 117 00:04:29,399 --> 00:04:30,920 effort that has to be done on the 118 00:04:30,920 --> 00:04:33,085 national level, which is not easy. 119 00:04:34,105 --> 00:04:36,025 So that's that is a threat and an 120 00:04:36,025 --> 00:04:39,405 issue that's influencing the economics of ASCs, 121 00:04:39,944 --> 00:04:40,685 most definitely. 122 00:04:41,465 --> 00:04:43,465 Got it. Got it. And going into the 123 00:04:43,465 --> 00:04:45,785 second half of twenty twenty five, what are 124 00:04:45,785 --> 00:04:47,725 you most focused on and excited about? 125 00:04:48,370 --> 00:04:50,370 Well, I think, you know, again, we talked 126 00:04:50,370 --> 00:04:53,009 about, you know, what's happening in the trends, 127 00:04:53,009 --> 00:04:56,050 and and it's it's exciting. It's a challenge. 128 00:04:56,050 --> 00:04:57,569 You know? How do we how do we 129 00:04:57,569 --> 00:04:59,910 overcome the access issue? How do we, 130 00:05:00,544 --> 00:05:02,865 enable patients to have their surgery at an 131 00:05:02,865 --> 00:05:05,504 outpatient facility? I could be more efficient and 132 00:05:05,504 --> 00:05:07,824 be more cost effective in order to do 133 00:05:07,824 --> 00:05:09,764 that. So that's an exciting thing. 134 00:05:10,305 --> 00:05:12,625 I think technology is always fun. That's a 135 00:05:12,625 --> 00:05:13,425 fun trend. 136 00:05:13,824 --> 00:05:14,485 You know, 137 00:05:15,529 --> 00:05:18,170 again, everybody wants to talk about AI and 138 00:05:18,170 --> 00:05:21,210 what is AI doing. And and 90% of 139 00:05:21,210 --> 00:05:22,730 people don't even know what it is, but 140 00:05:22,730 --> 00:05:24,110 they wanna talk about it. 141 00:05:24,730 --> 00:05:27,050 But it's a reality, and it's changing. We're 142 00:05:27,050 --> 00:05:28,189 seeing it incrementally 143 00:05:28,569 --> 00:05:31,634 in our in our, way we document cases, 144 00:05:31,694 --> 00:05:32,915 the way we do, 145 00:05:33,455 --> 00:05:35,875 patient visits, the way we do operative notes, 146 00:05:36,495 --> 00:05:38,975 little AI programs that we're using for, 147 00:05:39,615 --> 00:05:42,014 billing and collection and keep listening and all 148 00:05:42,014 --> 00:05:42,514 that. 149 00:05:42,895 --> 00:05:44,735 All that. Yeah. All the above. And then 150 00:05:44,735 --> 00:05:46,470 even just the technology that we have with 151 00:05:46,470 --> 00:05:48,870 the surgery, you know, with robotic surgery and 152 00:05:48,870 --> 00:05:51,430 other things, that's very exciting. It's very fun, 153 00:05:51,430 --> 00:05:53,430 you know, to see where that goes and 154 00:05:53,430 --> 00:05:54,649 how that can, 155 00:05:56,149 --> 00:05:58,569 make us even more efficient and and 156 00:05:59,274 --> 00:06:00,814 improve I think it will improve 157 00:06:01,435 --> 00:06:03,274 health care economics. So we can figure out 158 00:06:03,274 --> 00:06:04,334 how to do it correctly 159 00:06:04,795 --> 00:06:07,035 with the right vendors and the right smart 160 00:06:07,035 --> 00:06:10,014 people writing a good software. We can 161 00:06:10,394 --> 00:06:11,935 we can be more efficient 162 00:06:12,314 --> 00:06:14,735 and deliver better care to patients. 163 00:06:15,170 --> 00:06:16,709 A lot of cautious optimism? 164 00:06:17,009 --> 00:06:19,170 I think so. Yeah. Got it. And, 165 00:06:19,810 --> 00:06:21,889 I really enjoyed our time today. But before 166 00:06:21,889 --> 00:06:22,930 I let you go, I have one more 167 00:06:22,930 --> 00:06:25,250 question. How are you thinking about growth over 168 00:06:25,250 --> 00:06:27,430 the next year or so at your organizations? 169 00:06:28,675 --> 00:06:31,495 Well, we are a big proponent of independent 170 00:06:31,634 --> 00:06:32,535 medical practices. 171 00:06:33,475 --> 00:06:34,855 So Emerge Ortho 172 00:06:35,394 --> 00:06:37,475 is probably the sixth or seventh largest independent 173 00:06:37,475 --> 00:06:39,574 orthopedic practice in the in the country. 174 00:06:40,274 --> 00:06:40,774 But 175 00:06:41,235 --> 00:06:43,254 even that is not enough. So 176 00:06:44,180 --> 00:06:47,139 our biggest driver is how do we partner 177 00:06:47,139 --> 00:06:50,180 with other like minded independent orthopedic groups around 178 00:06:50,180 --> 00:06:50,839 the country. 179 00:06:51,779 --> 00:06:52,680 So we have 180 00:06:53,219 --> 00:06:56,419 a a, an organization called PELTO, which is 181 00:06:56,419 --> 00:06:57,735 a conglomerate of 182 00:06:58,134 --> 00:07:00,375 many different independent orthopedic groups from the West 183 00:07:00,375 --> 00:07:01,594 Coast, from the Midwest, 184 00:07:02,134 --> 00:07:04,474 Northeast, and then also North Carolina. 185 00:07:05,175 --> 00:07:07,675 How do we come together to maintain independent 186 00:07:07,735 --> 00:07:08,235 practices, 187 00:07:09,014 --> 00:07:09,754 like minded 188 00:07:10,055 --> 00:07:11,115 care of patients, 189 00:07:12,339 --> 00:07:12,839 collectively 190 00:07:13,379 --> 00:07:14,600 improve the, 191 00:07:15,620 --> 00:07:17,319 contracts that we have with payers, 192 00:07:17,860 --> 00:07:19,240 contracts we have with suppliers, 193 00:07:20,180 --> 00:07:22,600 provide better health care coverage for our employees 194 00:07:22,740 --> 00:07:24,360 and benefits for our employees. 195 00:07:24,740 --> 00:07:26,439 And so in order to stay competitive 196 00:07:26,819 --> 00:07:27,720 and to kinda 197 00:07:28,205 --> 00:07:31,004 deal with the rapid changes in health care 198 00:07:31,004 --> 00:07:33,264 economics, we feel that that's very important. 199 00:07:33,805 --> 00:07:36,205 That's a different model than being owned by 200 00:07:36,205 --> 00:07:38,045 a health care system or being owned by 201 00:07:38,045 --> 00:07:39,264 a a university 202 00:07:39,645 --> 00:07:40,464 system, which 203 00:07:40,990 --> 00:07:43,470 has benefits, but also has a lot of 204 00:07:43,470 --> 00:07:45,410 red tape and a lot of complexities. 205 00:07:45,790 --> 00:07:47,649 So so that's our biggest 206 00:07:48,269 --> 00:07:50,589 growth driver in the next three to five 207 00:07:50,589 --> 00:07:52,589 years is how do we make that work 208 00:07:52,589 --> 00:07:55,169 and expand that hopefully nationwide. 209 00:07:56,064 --> 00:07:57,985 Absolutely. Well, doctor Hanum, I wanna thank you 210 00:07:57,985 --> 00:07:59,585 once again for your time today and for 211 00:07:59,585 --> 00:08:01,585 joining me on the Becker's Healthcare podcast. Well, 212 00:08:01,585 --> 00:08:03,685 thank you for having me very much.