Here are three major trends ASC leaders should keep an eye on, according to VMG Health's "2024 Healthcare M&A Report."
More high-acuity cases being performed in ASCs
Higher-acuity cases are becoming increasingly common in the ASC setting. According to the report, Bill Prentice, officer of the Ambulatory Surgery Center Association says the shift "benefits both Medicare beneficiaries, who now have a lower-cost choice for the care they need, and the Medicare program itself, which will save millions of dollars as volume moves to the high-quality surgery center site of service."
ASC chains such as United Surgical Partners International and Surgery Partners have seen growth in higher-acuity cases particularly in the total joint and musculoskeletal space.
Private equity interest
Private equity's recent involvement in the ASC industry mostly stems from physician practice portfolio companies that have surgery centers.
According to PitchBook's "Q3 2023 Healthcare Services Report," the ASC industry saw six, trackable private equity deals through September 30, 2022. The deals were mostly add-on investments.
Lower-middle-market level consolidation
Lower-middle-market ASC consolidation has been driven by private equity interest and investment.
For example, private equity-backed SurgNet Health Partners, which was formed in 2022, acquired two ASCs in October. According to the report, the new chain is expected to expand through acquisitions, de novo ventures and center management.