ASC market share in top 50 largest US markets jumped 10% in 1 year — Here's why

ASC surgical volume grew in 46 of the 50 largest markets, while at the same time hospitals lost share of the outpatient procedures, according to a report from Franklin Trust Ratings outlining the top 50 largest U.S. markets. The overall ASC surgical procedure volume increased 22.9 percent nationally.

 

There are 35.8 million outpatient surgical procedures performed every year in hospital-based outpatient departments and ASCs nationwide.

"Migrating routine care from hospitals can allow hospital operators to focus on more complex and severe case-lads, eliminating inefficiencies for when more serious care interrupts operating room priorities and better manage throughput costs associated with patient flow and surgical suite turnaround logistics," said Managing Director of Franklin Trust Ratings John Morrow. "Ultimately, patient ambulation and recovery benefits from the most efficient process."

From 2015 to 2016, ASC growth more than doubled in 20 of the top 50 markets. ASC surgical volume grew in 46 of the 50 largest markets, while at the same time hospitals lost share of the outpatient procedures. The overall ASC surgical procedure volume increased 22.9 percent nationally.

"We're seeing the symptoms of a changing marketplace nationally," said Mr. Morrow. "As payment reforms collide with consumer sentiment, and technology pushes outpatient care to new limits, lower priced settings are disrupting traditional care models. Hospitals and ASC operators need to understand the market stage and transitions taking place in their service line markets as they mature."

The average ASC market share of the top 50 markets increased from 53 percent to 63 percent in one year. Early- and mid-stage markets, where ASCs have less than 60 percent market share, account for 38 percent of the top 50 markets. Markets where ASCs have more than 60 percent market share account for 62 percent of the top 50 markets.

As the transition occurs, hospital operators invested in ASCs through joint ventures are transitioning market volumes from HOPDs to ASCs without losing patient loyalty.

"The majority of care that can be moved to a lower cost setting is routine and poses little risk of harm or safety to patients in that setting," said Mr. Morrow. "In fact, some of the earliest clinical studies pointed to the efficiencies and improved outcomes in centers of excellence…and we see the same potential in these outpatient service lines."

 

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