Three major trends in the ASC marketplace include the movement of higher-acuity cases to ASCs, more frequent conversions of hospital outpatient departments into ASCs, and increased market activity at both the acquisition and physician levels, according to VMG Health's Taryn Nasr, director, and Savanna Dinkel, senior analyst.
Ms. Nasr and Ms. Dinkel gave Becker's ASC Review a rundown on each of these major trends:
Note: Responses were lightly edited for style and clarity.
1. Higher-acuity case volume. "We have seen a significant uptick in higher-acuity cases such as total joint replacements, spine procedures and cardiology procedures in the ASC setting. In many of our recent valuations, we have noticed ASCs either performing or planning on performing these more complex cases. Reimbursement changes have been a strong tailwind to this change, with CMS recently removing total joint replacements from the inpatient only list, proposing adding total knee procedures to the ASC payable list in 2020, and approving several cardiac catheterization procedures in an ASC setting. As we see healthcare trend more toward population health management, we expect to continue to see these higher-acuity cases move to the lowest-cost provider."
2. HOPD to ASC conversions. "We have also seen an increase in engagements related to the conversion of hospital outpatient departments to freestanding ASCs. We believe multiple factors are driving this change, including the shift of more complex cases to an ASC setting, recent CMS proposals intended to promote the shift of outpatient procedures from HOPDs to ASCs, and the desire of physicians to participate as owners."
3. Increased market activity. "Over the past few years, we have seen a trend of consolidation in the ASC space, as further detailed in VMG Health's 2019 M&A Report. Notably, not only have we seen a lot of activity from these big players, we have also seen an increase in activity at the physician level with their investment in ASCs."
Want to participate in future Q&As? Email Angie Stewart: astewart@beckershealthcare.com.
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