ASCs primarily compete with hospitals, but they're facing another layer of competition as more investors enter the space, according to Health Capital Consultants.
ASCs could face more competition from physician practices that perform office-based surgeries and other revenue-producing procedures, HCC's Todd A. Zigrang and Jessica L. Bailey-Wheaton wrote in an October newsletter.
There are two reasons for more competition between these players:
1. Reimbursement is increasingly based on quality, rather than quantity.
2. There is increasing integration and affiliation among hospitals, physician practices and other outpatient providers who become affiliated with an ACO.