AMBULATORY SURGICAL CENTERS PRELIMINARY UTILIZATION REPORT, INDIANA, 2003 TABLE OF CONTENTS. Introduction



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AMBULATORY SURGICAL CENTERS PRELIMINARY UTILIZATION REPORT, INDIANA, 2003 TABLE OF CONTENTS Introduction Characteristics of Ambulatory Surgical Centers Annual Utilization Statistics Outcome from Surgery Table A Summary of Key Resources and Utilization Table B Number of 50 Most Frequent Procedure Groups Introduction On a quarterly basis, the Indiana State Department of Health requests licensed ambulatory surgical centers to describe their resources, utilization, and outcome from the surgical procedures. This report summaries the information for calendar year 2003. Characteristics of Ambulatory Surgical Centers As of December 31, 2003, there were 119 ambulatory surgical centers in Indiana, located in 29 of the 92 counties. The majority of these centers have the following characteristics CHARACTERISTICS OF CENTERS Number of surgical centers 119 Percent of centers in urban counties of Indiana 91.6% Percent of centers with all physicians 51% focusing on a single specialty Percent that are MD owned 58% Percent of for-profit corporations 98% Average number of operating rooms 2.6 STATEWIDE STATISTICS These centers are established, equipped, and operated primarily for the purpose of performing needed medical surgical procedures and services. These centers are an alternative source of surgery performed in hospital-based outpatient operating rooms. Annual Utilization Statistics In 2003, physicians, dentists, or podiatrist performed 444,368 procedures on 339,401 patients in 119 centers. Each surgical center performed an average of 312 procedures every 30 days. It is estimated that this surgical volume represented 5 percent of all outpatient surgeries performed. In Fiscal Year

2003, the Indiana Hospital and Health Association determined that physicians in hospital-based outpatient operating rooms performed 10,111,101 procedures. The remaining one percent of surgeries are performed in offices of independent physician practices. The ambulatory surgical centers serve three distinct patient populations: the middle-aged population seeking assistance with digestive problems, the elderly seeking removal of cataracts, and all other patients seeking general outpatient surgical care. CHARACTERISTICS OF PATIENT POPULATION STATEWIDE PERCENT Percent of Females 54.7% Percent of Patients aged 1 to 17 years 7.6% Percent of Patients aged 18 to 64 years 59.7% Percent of Patients aged 65 years and older 32.7% Percent of Patients reimbursed under Medicaid 4.7% The number of operating rooms, total annual procedures, and principal surgical focus by center is shown in Table A. The trend line on the growth of centers and procedures is shown below: 2001 2002 2003 Total Ambulatory Surgery Centers 99 114 119 Total Procedures 367,326 398,295 444,368 In 2003, the majority of these centers focused on performing procedures on the eye and the digestive system. The most frequent surgical procedure groups filed in quarterly reports are seen below. NAME OF MOST FREQUENT CPT # OF NUMBER AVERAGE PROCEDURE GROUPS CODE ASCs OF PER PROCEDURES CENTER Integumentary (Skin) System 10040-19499 36 3,307 92 Musculoskeletal System 20000-29909 46 21,441 466 Respiratory System 30000-32999 19 10,088 531 Digestive System 40490-49999 53 93,258 1,760 Urinary System 50010-53899 12 4,532 377 Genital System 54000-58999 23 7,507 326 Nervous System 61000-64999 56 45,748 816 Eye and Ocular System 65091-68999 56 75,223 1,343 Auditory System 69000-69999 34 10,451 307 Cardiac Catheterization 93501-93572 5 7,765 1,553 Other - 165,048 - Total Of All Reported Procedures Total 119 444,368 3,735 1. Procedure codes are abstracted from the AMA Physician Current Procedural Terminology (CPT-4). 2. The number of the 50 most frequent procedure groups by CPT diagnostic category in the state for all centers is seen on Table B. Outcome from Surgery

Patients are referred to a surgical center based on recommendations from their health care provider. Most patients arrive with low risk for surgery and have no prior chronic problem that may interfere with the new procedure. Most patients are treated within two or three hours and discharged to family members under the care of their family physician. A small percent of these patients do expect limited problems after the operation, and are referred to an acute care hospital for treatment of stable or unstable medical conditions. The percent of inpatient transfer is higher with patients with existing cardiac or acute problems seen prior to surgery. OUTCOMES FROM SURGICAL PROCEDURES Number of patients transferred to a hospital with stable medical conditions. Number of patients transferred to a hospital with unstable medical conditions Number of patients with a post-surgical wound infection Number of patient deaths Percent of patients with no other medical problems other than need for surgery Percent of patients with an other chronic (mild) systemic disease prior to surgery Percent of patients with an other acute STATEWIDE STATISTICS 1,578 of 444,368 patients 69 of 444,368 patients 294 of 444,368 patients 1 Death 37.3 % 45.6% 17.1% (severe) systemic disease prior to surgery It is recommended that individuals considering outpatient surgery discuss the need with their physician, discuss coverage with their insurance representative, and notify the surgeon of any prior conditions prior to arrival at the surgical center. TABLE A SUMMARY OF KEY RESOURCES AND UTILIZATION, 2003 AMBULATORY SURGICAL CENTERS, INDIANA NAME OF COUNTY # OF KEY TOTAL CENTER NAME OPERATING PROCEDURAL 2003 Procedure SPECIALIZATION PROCEDURES ROOMS Advanced Surgery Center Tippecanoe 5 Eye 2,619 Aesthetic Surgery Center Hamilton 3 Plastic 184 Akin Medical Center Floyd 2 Allergy 727

Allied Physician Surgery Center St Joseph 10 General 10,558 Apac Surgery Center II Lake 1 Pain 831 Athens Diagnostics Surgical Cnt Montgomery 2 General 3,090 Beltway Surgery Centers Marion 9 General 8,178 Bloomington Endoscopy Center Monroe 3 Digestive 5,250 Bloomington Surgery Center Monroe 3 Eye 3,510 Calumet Surgery Center Lake 5 General 3,765 Care Labs Marion 1 General 1,063 Center for Special Surgery Marion 2 Pain 588 Centers for Pain Management Lake 2 General 2,421 Central IN Laser & Surgery Howard 2 Eye 843 Central IN Orthopedic Surgery Delaware 2 Orthopedics 336 Central IN Orthopedic Surgery Madison 2 Orthopedics 3,241 Central Indiana Surgery Center Marion 3 Eye 858 Chandana Surgery Center Porter 3 General 2,821 CLI Surgery Allen 3 Eye 1,003 Columbus Eye Surgery Center Bartholomew 1 Eye 1,291 Columbus Surgery Center Bartholomew 3 General 2,732 Community Surgery Center Lake 9 General 7,291 Digestive Health Center Hamilton 2 Digestive 4,606 Dupont Surgery Center Allen 6 General 11,886 Eastern IN Cnt for Ambulatory Wayne 4 General 7,015 Endoscopy Center Marion 3 Digestive 6,574 Evansville Deaconess Vanderburgh 7 General 6,248 Evansville Newburgh Center Warrick 5 General 3,681 Eyecare Consultants Surgery Cnt Vanderburgh 2 Eye 1,776 Foot & Ankle Surgery Center Marion 3 Podiatry 1,534 FW Cardiology Cath Allen 1 Cardiology 990 FW Endoscopy Center Allen 3 Digestive 2,691 FW Ophthalmic Surgery Center Allen 4 Eye 5,152 FW Orthopaedics Surgicenter Allen 5 General 7,052 Franciscan Surgery Center Marion 6 General 5,399 Gastrointestinal Endoscopy Cnt Vanderburgh 2 Digestive 5,257 Goshen Ambulatory Care Center Elkhart 4 General 3,108 Grand Park Surgical Lake 2 General 982 Grossnickle Eye Surgery Center Kosciusko 2 Eye 5,406 IMA Endoscopy Surgical Lake 2 Digestive 3,060 Indiana Eye Clinic Johnson 2 Eye 2,550 IN Surgery Center Noblesville Hamilton 7 General 4,936 Indiana Surgery Howard Howard 4 Howard 4,071 Indiana Surgery Center North Marion 8 General 12,390 IN Surgery Cnt 16 th Street Marion 6 General 5,070 Indiana Surgery South Campus Marion 5 General 6,874 Indianapolis Endoscopy Center Marion 3 Digestive 9,034 John Kenyon Surgery For Eye Clark 3 Eye 1,459 KK & A Surgery Center Floyd 4 Orthopedics 3,950 Lafayette Amb Surgery Center Tippecanoe 4 General 1,280 Lafayette Cath Lab Tippecanoe 1 Cardiology 2,550

Lake Park Surgicare Lake 6 General 4,384 Lakeview Ambulatory Lake 3 General 5 Laser & Skin Surgery Center Hamilton 2 Dermatology 843 Marion Surgicenter Grant 3 General 1,699 Medical Group Surgery Center LaPorte 4 General 2,575 Meridian Endoscopy Center Marion 4 Digestive 6,293 Meridian Plastic Surgery Center Marion 3 Plastic 5,341 Merrillville Center Advanced Lake 2 Digestive 7,321 Michiana Endoscopy Center St Joseph 3 Digestive 8,460 Mid-America Surgery Center Delaware 4 General 4,000 Midwest Surgery Center Vigo 3 General 1,606 Muncie Ambulatory Surgicenter Delaware 4 Eye 3,538 Muncie Cataract and Laser Eye Delaware 3 Eye 1,278 Munster Same Day Surgery Cnt Lake 4 General 3,865 Naab Road Surgery Center Marion 7 General 10,267 North Central Health Services Tippecanoe 2 General 547 North Meridian Surgery Center Hamilton 3 General 2,355 Northeast IN Endoscopy Center Allen 2 Digestive 4,508 Northside Cardiac Cath Lab Marion 2 Cardiology 3,401 Northside Gastroenterology Endo Marion 4 Digestive 7,509 Northwest Surgery Center Marion 5 General 6,143 Novamed Eye New Albany Floyd 8 Eye 4,451 Novamed Eye Hammond Lake 3 Eye 1,907 Oakview Surgery Center Fulton 1 Podiatry 156 OSMC Outpatient Surgery Center Elkhart 3 General 4,311 Pain Center Southern Indiana Bartholomew 5 Pain 1,748 Premier Surgery Center Allen 7 General 3,826 Primesource Healthcare ASC Marion 3 Eye 422 Richmond Cataract & Laser Wayne 4 Eye 209 Richmond Surgery Center Wayne 4 General 4,040 River View Surgery Center Grant 9 General 5,337 Riverpointe Cardiovascular Lab Elkhart 1 Cardiology 501 Riverpointe Surgery Center Elkhart 1 General 4,504 Sagamore Surgical Service Tippecanoe 3 General 2,305 South Bend Clinic & Surgicenter St Joseph 2 General 2,138 South Central Surgery Center Johnson 4 General 1,299 South Emerson Surgery Center Marion 3 Orthopedics 2,129 Southeast Surgery Center Marion 4 Pain 6,409 Southern Indiana Endoscopy Floyd 3 Digestive 4,043 Southern Indiana Surgery Center Monroe 6 General 7,277 Spine Rehab Ambulatory Marion 2 Pain 1,477 Spring Mill Surgery Center Hamilton 9 General 659 St Charles Surgical Pavilion St Joseph 2 General 2,305 Summit Plastic Surgery Allen 3 Plastic 1,778 Surgery Center Pain Southern Monroe 2 Pain 6,516 Surgery Center Eye Specialty Marion 2 Eye 4,791 Surgery Center (Hand) Marion 3 Orthopedics 6,409 Surgery Center of Indianapolis Marion 5 General 10,091

Surgery Center of Ophthamology Allen 3 Eye 1,138 Surgery Center Southeastern IN Decatur 4 General 1,146 Surgery Center Plus Marion 4 General 1,834 Surgery Center (Allen) Allen 3 Digestive 5,948 Surgery One Allen 5 Orthopedics 8,703 Surgical Care Center Marion 4 General 3,555 Surgical Center of New Albany Floyd 4 General 1,517 Surgicare LLC Monroe 2 General 4,075 Surgicare Outpatient Surgery Cnt Vanderburgh 13 General 8,177 Terre Haute Heart Center Cath Vigo 1 Cardiology 580 Unity Surgery Center Tippecanoe 4 General 8,663 Valley Surgery Center Vanderburgh 3 Eye 2,453 Vincennes Surgery Center Knox 4 General 477 Vision SC Springhill Clark 2 General 3,178 Wabash Valley Eye Knox 3 Eye 1,568 Welborn Clinic Surgery Vanderburgh 5 General 6,224 Whitewater Valley Surgery Cnt Montgomery 2 General 1,783 Williams Eye Surgery Center Lake 3 Eye 1,737 Women's Physician Surgery Marion 5 General 11,653 Woodlawn Healthcare LaPorte 2 General 5,336 Subtotal 119 ASCs (28) (435) - 444,368 TABLE B NUMBER OF 50 MOST FREQUENT PROCEDURE CODES* BY CURRENT TERMINOLOGY DIAGNOSTIC CATEGORY, AMBULATORY SURGICAL CENTERS, INDIANA, 2003 ANATOMICAL CPT PROCEDURE DESCRIPTION # CASES SYSTEM CODE Skin 19120 Excision of cyst or breast tissue (36) 679 10040-19499 19125 Excision of breast lesion (37) 660 19325 Mammaplasty with implant (24) 1,237 Other 731 Subtotal Of Procedures of Integumentary System 3,307 Muscles 26055 Tendon Sheath (27) 970 20000-29909 28285 Hammertoe operation (34) 723 20680 Removal of deep implant (49) 529 29826 Arthroscopy with acromioplasty (18) 1,822 29877 Chondroplasty (20) 1,477 ( 29881 Arthroscopy with meniscectomy (9) 5,645 Other 9,022 Subtotal Of Procedures of Musculoskeletal System 21,441

Respiratory 30140 Submucous resection turbinate (25) 1,226 30000-32999 30520 Septoplasty or submucous resection (16) 2,129 31255 Endoscopy with ethmoidectomy 2,231 (15) 31256 Endoscopy with maxillary antrostomy (35) 706 31267 Sinus Endoscopy with polyp removal (19) 1,515 31288 Sinus Endoscopy (23) 1,297 Other 984 Subtotal Of Procedures of Respiratory System 10,088 Digestive 42820 Tonsillectomy (12) 4,150 40490-49999 42826 Secondary Tonsillectomy (38) 649 42830 Adenoidectomy (41) 596 43239 Upper gastrointestinal with biopsy (4) 15,985 43248 Gastrointestinal endoscopy tube 2,489 (13) 43580 Pyloromotomy (42) 579 45378 Colonoscopy, flexible (2) 26,449 45380 Colonoscopy with biopsy (7) 8,929 45383 Sigmoidoscopy diagnostic (26) 1,156 45384 Colonoscopy to remove tumor (11) 4,638 45385 Colonoscopy to snare/remove tumor (5) 12,330 47562 Cholecystectomy excision (21) 1,325 49505 Repair of inguinal hernia (29) 1,268 Other 12,719 Subtotal Of Procedures on Digestive System 93,258 SYSTEM CPT PROCEDURE DESCRIPTION # CASES Urinary 50590 Lithotripsy, extracorporeal shock (42) 795 50010-53899 53780 Urethra Repair (46) 534 Other 3,207 Subtotal Of Procedures on Urinary System 4,532 Genital 55250 Vasectomy (47) 532 54000-58999 58558 Hysteroscopy surgical (17) 1,970 58563 Hysteroscopy with endometrial ablation (45) 564 58662 Laparoscopy with excision of lesion (40) 608 58670 Laparoscopy (28) 927 58970 Follicle puncture for oocyte retrieval (33) 735

58974 In Vitro fertilization (44) 577 Other 1,594 Subtotal Of Genital System 7,507 Nervous 64622 Somatic Nerve Destruction (22) 1,301 61000-64999 64721 Neuroplasty to carpal tunnel (8) 6,744 Other 37,703 Subtotal Of Procedures on Nervous System 45,748 Eye 65038 Evisceration of ocular contents (45) 728 65091-68899 65855 Trabeculoplasty (30) 783 66761 Iridotomy (31) 755 66821 YAG Laser on lens capsule (3) 16,810 66981 Intracapsular cataract extraction (35) 1,061 66982 Extracapsular Cataract Removal with lens(50) 528 66984 Extracapsular Cataract Removal (1) 47,665 66999 Anterior segment of eye (14) 2,470 67038 Vitrectomy (32) 748 67210 Retina Photocoagulation (39) 613 67311 Strabismus Surgery (42) 584 Other 2,478 Subtotal Of Procedures on Eye and Ocular System 75,223 Auditory 69436 Tympanostomy (6) 9,522 69000-69999 Other 929 Subtotal Of Procedures on Auditory System 10,451 Catheterization 93510 Left Heart Catheterization (10) 5,207 93501-93572 93526 Right Heart Catheterization (48) 530 Other 2,028 Subtotal Of Cardiac Catheterization Procedures 7,765 All Other 165,048 Procedures TOTAL Of All REPORTED PROCEDURES 444,368 * Note: Removed procedures from top 50 list that were listed as Payment Group 1 in the March 28, 2003 Federal Register.