ASCs surge in the Sun Belt

ASCs are experiencing a development boom in the Sun Belt, a region that spans the Southeastern and Southwestern United States. The trend is being driven by demographic shifts, increased healthcare spending and regulatory factors.

Here are five key points about this ASC expansion:

1. Geographically, the Sun Belt — Texas, Florida and Southern California in particular — has higher demand for outpatient care as spending increases and aging populations settle there, Arjun Gangakhedkar, a real estate and financial specialist for newly formed ASC chain Ker Medical and a principal at QHM Partners, told Becker's

2. "With the majority of baby boomers set to retire by the end of the decade, many are relocating to places like Florida and Texas," Mr. Gangakhedkar said. "This trend supports new practices, and we're here to address the real estate needs on the ASC side as demand grows in these areas.

3. California had the most new ASCs that Becker's reported on in 2023, adding 10 new centers. In comparison, Texas and Florida each saw the development of seven new ASCs in 2023.

4. Texas and Florida in particular have thriving ASC markets because neither state has certificate-of-need laws, which require healthcare providers, including ASCs in many states, to receive permission to build facilities.

5. Another Sun Belt state, South Carolina, is primed for an ASC boom. In October, South Carolina repealed the state's certificate-of-need law, which had been on the books since the 1970s. The state is also seeing the highest population growth in the Sun Belt; the population grew the equivalent of 1.15% per year between 2008 and 2023, according to data from Pew.  

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