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Myles Hyman discusses the future growth of outpatient surgery centers with the Albany Business Review.
Article by Albany Business Review Reporter Liz Young
About 20% of Hyman Hayes Associates’ revenue is coming from outpatient surgery centers. Hyman Hayes has designed 16 outpatient surgery centers since 2012, many of them in the Albany region, said Myles Hyman, a principal at the Albany firm. The firm is now planning to expand its business by moving into other surrounding states where federal and state regulations allow for physician groups to build outpatient centers.
“We really expect a growth in this business,” Hyman said.
Hyman Hayes is the eighth largest architecture firm in the Albany area, with $4 million in 2017 local architecture billings, according to the Business Review’s List. The firm completed 108 projects in 2017. There is increased demand for surgeries to be done in an outpatient setting, and by extension, for more standalone surgery centers. The outpatient surgery market worldwide is expected to be worth more than $93 billion by 2025, up from $61 billion in 2017. Health care organizations from physician groups to hospital systems are investing to meet that demand. Part of the reason physician groups, in particular, are building the centers is doctors with an ownership stake in the facility can collect a cut of the facility fee, as well as their normal fee for performing surgery. Having a surgery center is a recruiting perk for practices, too, Hyman said. It can add value to the practice.
“We had one doctor who was by himself in his practice and he wanted to recruit other doctors, and he was having a hard time doing it,” Hyman said. “As soon as he built the surgery center, he had no problems doing it, because it was more than just a doctor’s office, it was a doctor’s office and a surgery center and it was very attractive to these younger doctors.”
Hyman Hayes designs the centers with flexibility, so even if only one specialty provider uses the space to start, the center later has the option of becoming multi-specialty with limited physical changes. (State approval is often needed.) “All of a sudden, our asset becomes much more valuable because you can shop it around to any doc,” Hyman said. For example, Hyman Hayes built an eye care center that now wants to add ear, nose and throat care and a pain specialty center that plans to add gynecological services. Designing and building outpatient surgery centers can be complicated, especially given how much equipment has to fit into a small space. “Most of the centers we’ve done are about 7,000 square feet for a two operating-room surgery center, and if you think about everything that’s in a hospital, it all has to fit into the center,” Hyman said. Hyman Hayes works on the centers from design through completion, including sending out bids to qualified contractors and observing construction.
“We’re basically placing the same importance on the surgery centers as all our other work, and we think that it could lead to significantly more work,” he said. “It makes sense there’s going to be a lot of this work coming down. We hope to get it all.”