Arizona became an ASC stronghold through private equity, hospital gaps and the state's deep-rooted history of opening ASCs, according to Arizona ASC leaders.
Since Jan. 1, Becker's ASC Review has reported on 10 ASCs opened or announced in Arizona. Additionally, two Arizona ASC chains are pursuing national growth.
Comprehensive Surgical Services opened its flagship ASC in Gilbert, Ariz., this year and plans to open 20 more ASCs in the next two years in an ambitious $125 million project. In May, Mesa, Ariz.-based Surgery Center Services of America announced its plans to open 14 more ASCs this year. The company has developed more than 300 ASCs nationwide.
SCSA President Ron Blair told Becker's ASC Review that this growth is due in part to Arizona's ASC history. Many of the new centers are forming from the large inventory of old ASCs that have "run their course."
There's also been a tremendous interest in Phoenix by private equity groups, Mr. Blair added. This private equity investment subsequently spurred private practice supporters to reinvest in their practices and the consolidation of private practices.
Mr. Blair said he believes this Arizona ASC growth will only continue as commercial payers continue to recognize the "economic advantage to partnering up with surgery centers."
"The Phoenix Metroplex is a large place geographically and, even though we have hospitals strategically placed around the Metroplex, they're not in everybody's neighborhood," he said. "Surgery centers are being built in the gap between where these healthcare centers are."