Big ASC chains' secret to growth

ASC chains are looking to higher-acuity procedures over other growth strategies to facilitate revenue boosts, according to VMG Health's 2023 mergers and acquisitions report released March 21. 

The migration of high-acuity procedures to the ASC setting increased in 2022, particularly in orthopedics, cardiology and higher-acuity spine procedures, according to the report. Orthopedics was the most common specialty served by ASCs in 2022. 

In an Oct. 20 earnings call, Saum Sutaria, MD, CEO of Dallas-based Tenet Healthcare, USPI's parent company, said the chain is doubling down on its high-acuity growth strategy. He cited growth at an ASC in Tennessee, where the center boosted revenue by 46 percent by replacing high-volume, low-acuity procedures with high-acuity orthopedic cases.

Because of this growth, orthopedic procedures made up 20 percent of the company's year-to-date volume. 

UnitedHealth Group's Optum, parent company of ASC chain SCA Health, is also looking to higher-acuity surgical procedures to lead growth, UnitedHealth Group CFO John Rex said in an Oct. 14 earnings call

These high-acuity cases give ASCs the opportunity to make more money per case, and ASC chains are taking advantage of the opportunities, the report said. 

 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Webinars

Featured Whitepapers

Featured Podcast