Orthopedic services have historically operated as a major profit center in many health systems, boasting sizable, if somewhat declining, margins. This standing as an anchor service line is increasingly in jeopardy as total joint replacements shift to the outpatient setting, putting pressure on margins. Managing these changes requires retooling historic strategies for orthopedic services, including adopting innovative care models, reducing clinical variation, creating stronger aligned physician relationships and anticipating the further move of cases to the outpatient setting by exploring multiple facility options.
Sue Anderson is a Principal at The Chartis Group and has nearly 20 years of healthcare management consulting experience advising hospitals, health systems, academic medical centers and physician practices. Her work is...