With 70% of ASCs remaining independent as of 2022, according to a report from VMG Health, consolidation may seem like a fairly distant problem. But as health systems, management companies and private equity firms take interest in ASCs, it may be time to ask if consolidation is a threat worth taking seriously.
Hospitals and health systems have sought out partnerships with ASCs in recent years.
According to the 2023 "Hospital Leadership ASC Survey," conducted by ASC expert group Avanza Healthcare Strategies, 47% of hospitals and health systems have an affiliation or ownership interest in multiple freestanding ASCs.
A survey from VMG Health also showed that 60% of health systems would consider a joint venture partnership with ASCs in 2024.
ASC chains have continued to expand their footprints over the years. As of 2022, major operators make up nearly 30% of ASCs, according to VMG Health. These chains don't have plans on slowing down on growth.
In 2023, Surgery Partners made the strategic decision to partner with three health systems to develop ASCs. This is a prime example of health systems working with ASC chains to accomplish a common goal — creating and managing more ASCs.
Private equity firms have also been turning their heads toward ASCs.
In the last few years, private equity deals for orthopedics-focused ASCs have increased, according to a report from VMG Health. One reason for this could be that orthopedic cases are the highest-reimbursing procedures in ASCs, giving investors more bang for their buck. Another reason is that orthopedics is among the fastest-growing specialties in the ASC setting.
There are a lot of eyes on ASCs from a variety of sectors. As the benefits of ASCs become more widely known, more groups will want to claim a bit of that potential for themselves.