Joint-venture developments are becoming increasingly common through the ASC industry as health systems and hospitals recognize the growth potential of opening ASCs.
Recently, Cincinnati-based Bon Secour Mercy Health System, a 48-hospital Catholic system, teamed up with Raleigh, N.C-based Compass Surgical Partners to build out more than 30 ASCs.
The joint venture will develop ASCs across Compass' reach in Kentucky, Ohio, South Carolina, Virginia, Maryland, New York and Florida. Compass has already built a network of more than 250 ASCs over the last 30 years.
For David Cannady, chief strategy officer of Bon Secours Mercy Health, having a partner with strong expertise in the ASC world is key in his development strategy.
"We are focused on ensuring we have proper pacing and prioritization of projects that allow us to scale efficiently," he told Becker's. "We are also committed to developing solid physician partnerships and securing managed care contracts. Compass brings significant experience and expertise in each of these areas, and we are already seeing the value of our partnership in accelerating our ambulatory footprint."
The partnership with Compass is also crucial in the financial viability of Bon Secours' ASC growth and strategic expansion, Mr. Cannady added.
"In addition to our partnership with Compass, we are adding internal expertise to work with both our hospital operators and Compass," he said. "These teammates will help to identify service lines and procedures for which the migration to ambulatory makes clinical, operational and financial sense."
Mr. Cannady forecasts a balanced future –– one where ASCs continue to grow, but the inpatient market does not disappear entirely.
"We anticipate that there will be continued demand for inpatient services," he said. "While the number of patients may decline, we expect that the average daily census will be the same or even grow."
And for other systems looking to expand into the ASC world, Mr. Cannady says that "speed to market" is vital, alongside balanced decision-making.