Here are 17 ASC benchmarks to know on hospital investments and joint ventures from multiple sources across the industry.
Hospital partnerships
A HealthLeaders Media Buzz survey conducted in partnership with Avanza Healthcare Strategies and Clark Hill Strasburger detailed statistics on hospital joint ventures and investments in ASCs.
HealthLeaders, Avanza Healthcare Strategies and Clark Hill Strasburger polled 1,009 senior executives and clinical leaders at for-profit and nonprofit health systems and hospitals across the U.S.
Here are three observations from the report:
1. The main reasons cited for partnering with or owning an ASC are the increase outpatient surgical capacity (64 percent), enhance physician relationships (60 percent), responding to consumer-driven trends (58 percent) and to increase revenue (53 percent).
2. Sixty-two percent of hospitals and health systems hold or prefer to hold a controlling interest in an ASC venture.
3. Out of respondents who have ASC affiliation or ownership, 49 percent said they don't allow their physicians to invest in ASCs the hospital owns or is affiliated with, and 51 percent said they do.
ASC company acquisitions
Forty percent of ASC companies saw acquisition activity in the space increase in 2017, according to HealthCare Appraisers' 2018 ASC Valuation Survey.
HealthCare Appraisers surveyed 15 respondents representing more than 700 surgery centers across the U.S. to generate its results.
Acquisition activity
4. No change from previous year: 27 percent
5. Decreasing: 33 percent
6. Increasing: 40 percent
Competition for acquisitions
7. No change from previous year: 47 percent
8. Decreasing: 13 percent
9. Increasing: 40 percent
Private equity
The majority of healthcare executives are planning healthcare partnerships, alliances and joint ventures to gain access to outside expertise and/or technology, according to a West Monroe Partners and Mergermarket report.
Mergermarket surveyed 100 senior corporate and private equity executives from U.S. firms that had completed at least one healthcare deal in the past two years.
Plans to target healthcare partnerships, alliances and JVs over the next 12 to 18 months
10. Will pursue more partnerships, alliances and JVs: 79 percent
11. Likely won't pursue more: 2 percent
12. Remains unclear at present: 19 percent
Greatest benefits of healthcare partnerships, alliances and joint ventures
13. Provides access to outside expertise and/or technology: 57 percent
14. Lowers risk profile: 43 percent
15. Enables quicker growth of top-line revenue: 42 percent
16. Allows savings on costs associated with regulatory compliance: 38 percent
17. Secures funding on favorable terms: 16 percent