Seventy percent of ASCs were independent in 2022, but inflation has the potential to shrink this figure.
In 2022, the annual inflation rate was 6.5 percent, making it the year with the second highest rate of the 2000s.
Inflation puts ASCs' independence at risk because it adds to the financial challenges surgery centers face, such as low reimbursement rates. These issues could lead ASCs to seek out partnerships with hospitals or private equity so they do not have to bear the burden alone.
"Unfortunately, there will be a significant decrease in independent orthopedic/spine ASC practices," James Chappuis, MD, an orthopedic surgeon at Spine Center Atlanta, told Becker's.
"This change will be caused by the constant decrease in reimbursement and the increase in cost due to inflation. The profit margin then becomes minimal, if there is any at all. Without any profit to reinvest into independent ASCs, they will falter and turn to a profitable sale to a local hospital or a merger/acquisition as an exit strategy," Dr. Chappuis said.