While the ASC space remains largely fragmented and independent, consolidation is on the rise as the industry's largest chains continue to expand.
Here are three recent updates on ASC consolidation:
1. UnitedHealth Group, parent company of Optum, is a potential buyer of Brentwood, Tenn.-based ASC operator Surgery Partners. Surgery Partners went public in 2015 and is one of the largest ASC chains in the country, with over 192 facilities. Private equity firm TPG is also an interested buyer, among other PE firms and strategic bidders.
2. ASC giant United Surgical Partners International, owned by Tenet Healthcare, quietly purchased Covenant Physician Partners in early 2024. The sale occurred after Convenant's PE owner, KKR, paid off lenders at par to avoid a potential distressed debt exchange. With over 7% of the market share, USPI is the largest ASC chain by number of physicians and centers.
3. Deerfield, Ill.-based SCA Health, owned by Optum, purchased at least two cardiovascular chains in 2023, which was reported by Becker's in May. One of the chains, National Cardiovascular Partners, has 21 cardiac catheterization and vascular labs, while the other chain, Ponte Vedra Beach, Fla.-based Pivotal Healthcare, has 11 affiliate practices and 14 locations. Cardiology is the fastest-growing ASC specialty and has drawn significant interest from PE groups.