Private Equity’s Growing Role in Ambulatory Surgery Centers Private equity firms are increasingly investing in hospital-owned ambulatory surgery centers (ASCs), allowing these companies to bankroll a growing sector while limiting regulatory scrutiny. Some healthcare systems view private equity as collaborators rather than competitors. By allowing a sponsor to help manage the ASC, system resources can be freed up to focus on core capabilities. Despite ongoing efforts by state and federal lawmakers to limit hospital costs through proposed bills that would eliminate facility fees, experts believe that hospitals and corporate investors will continue to invest in ASCs. Even if site-neutral pay legislation moves forward, the investment in ambulatory surgery centers is expected to persist.
Rebekuh Eley’s Post
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Manufacturer investment in the growing Ambulatory Surgical Center (ASC) market can bring about both positive and negative outcomes. Here's a breakdown of key points to consider: **Positives:** - Increased innovation and technology: Investment can drive research and development of advanced surgical equipment tailored for ASC settings, leading to minimally invasive procedures and better patient outcomes. - Enhanced efficiency and cost-effectiveness: Streamlined supply chains and cost-effective equipment packages can boost ASC operations, potentially reducing costs for patients. - Improved access to capital: Manufacturer investment can offer ASCs financial support for expansion, renovations, and acquiring new equipment to meet the rising demand for outpatient surgeries. **Negatives:** - Focus on profit over quality: Manufacturers may prioritize selling expensive equipment over patient-centered solutions or affordability for ASCs. - Consolidation and limited choice: Increased manufacturer involvement could limit equipment choices for ASCs and escalate prices due to market consolidation. - Focus on short-term gains: Manufacturers might prioritize short-term sales over building long-term partnerships with ASCs, overlooking ongoing support needs. In the end, the impact of manufacturer investment hinges on effective management. Elements to consider include transparency, regulatory oversight to safeguard patient care and competition, and protecting physician autonomy in equipment selection based on patient needs rather than manufacturer influence. By acknowledging these aspects, collaboration between ASCs and manufacturers can ensure that investments enhance patient care and healthcare system efficiency.
'The ASC shift is real': Zimmer Biomet's latest ASC play
beckersasc.com
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As anticipated the next iteration of private equity investment is in hospital owned ASCs. “A lot of hospitals have come to understand that [private equity] can be a competitor but also a collaborator. As hospitals look at areas to diversify, ASCs are high on the list and [private equity] can be a valuable source of capital.” Some of the fastest-growing specialties within the ambulatory surgery center sector include orthopedics, cardiology, gastroenterology, obstetrics and urology. Private equity is focused on higher-acuity services such as cardiology. #ASC #CVASC #PE #HospitalASC
Private equity firms upping investment in hospital ASCs
modernhealthcare.com
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A thoughtful assessment and suggestions on how to address the rapid move of patient procedures to Ambulatory Surgery Centers. Key considerations for MedTech companies as stated: * Pace of procedure move from hospitals to outpatient care facilities (e.g., 29% growth in Medicare Payments to ASCs from 2014 – 2020) (need to be ready and prepared) * ASCs do not operate the same as HOPDs (need to offer unique service and support) * ASCs have specific product and support needs (need for a targeted sales and support strategy). Understanding how to best message and engage with ASCs and understanding their respective affiliations (IDNs, hospitals, physicians) and relationships will become increasingly important for MedTech companies. Great read Kristin Brillant and Carolina Bueno https://lnkd.in/e__5TDQF
Expanding Business into Ambulatory Surgery Centers
iqvia.com
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As many organizations continue to face resource constraints coming out of the challenging years of the pandemic, partnership models can offer opportunities to redeploy capital while partnering with best-in-class operators to drive efficiency and growth, particularly in non-acute business units. In a new article, Courtney Midanek, Adnan Qureshi and Matt Santulli describe how increasing competition in the area of ambulatory surgery center management services is providing health systems with an ever-expanding range of potential partners that are offering new and more flexible alignment structures. #ambulatorysurgery #healthcaremanagment #partnershipmodels https://lnkd.in/gFjAWXqg
Read the Article: New Competition in the Ambulatory Arena Offers New Partnership Opportunities
kaufmanhall.com
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The growth of ASCs continues with new investments every day. Consolidation will continue as the largest ASC management companies continue to acquire. SPDx can grow the number of surgeries an ASC can perform and increase profitability no matter who owns the facility.
Private Equity fuels growth of hospital-owned ASCs amidst rising demand, regulatory loopholes - OR Manager
ormanager.com
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Research by Christopher Whaley and Michael Richards examined the private equity takeover of Hospital Corporation of America (HCA), revealing significant strategic shifts throughout the ownership lifecycle. They found that hospital chains: - Shifted Advertising 📢 and pursued joint ventures with ambulatory surgery centers. - Increased Inpatient Flow 🚑 through more patient transfers and emergency department captures. - Managed shorter, less treatment-intensive stays for admitted patients. - Reduced Outpatient Surgery Volume, but remaining cases focus on more complex procedures They note that these strategic changes persist post-divestment, highlighting the lasting impact of private equity on hospital operations.
Hospital behavior over the private equity life cycle
sciencedirect.com
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A VMG Health survey revealed that 88% of ambulatory surgery center (#ASC) leaders anticipate 2025 financial performance will meet or exceed 2024 levels, despite challenges like labor shortages and supply chain issues, with many focusing on service line diversification and strategic partnerships. https://bit.ly/3USy3wg
VMG: 88% of ASC Leaders Expect 2025 Financial Performance to Meet or Exceed 2024
https://ascnews.com
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With over 9,000 ASCs in the U.S. and growing, the shift to outpatient surgery is accelerating. For ASC owners, incorporating high-demand spine procedures can boost profitability, offering significant cost savings and high-quality outcomes. NANISX offers a comprehensive suite of interventional spine procedures, helping ASC owners enhance their offerings and financial performance. #ASC #OutpatientSurgery #Orthopedics #HealthcareGrowth #NANISX #SpineSurgery #InterventionalPain #KICVentures #BackPain
ASCs 'single biggest opportunity' to cutting healthcare costs
mail.beckersasc.com
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What role do Ambulatory Surgery Centers (ASCs) play in #healthcare? ASCs play a crucial role in modern healthcare by providing efficient, cost-effective surgical care outside of traditional hospital settings. A few reasons why they're so important: 💰Cost-effectiveness - ASCs typically have lower overhead costs compared to hospitals, resulting in lower charges for patients and payers. This helps to reduce overall healthcare expenses. 🕗 Convenience - Patients appreciate the streamlined processes, shorter wait times, and easy access to outpatient surgical procedures closer to home. 💡 Innovation - ASCs are at the forefront of adopting new technologies and techniques, driving innovation. This enables them to offer advanced treatments and procedures to patients. 👩⚕️ Specialized care - Many ASCs focus on specific procedures or specialties, allowing for a high level of expertise and specialized equipment tailored to those services. This specialization leads to better outcomes for patients. Overall, ASCs play a vital role in enhancing access to quality outpatient surgical care while simultaneously reducing healthcare costs, and improving the patient experience. #ASC #healthcare #outpatient
A Planning Playbook for Opening a New Orthopedic ASC
aorn.org
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Thanks to Thomas Cunningham at Physicians Practice for interviewing me as part of his article “Why independent physicians are seeking strategic partners”. In our interview, I discussed why aligning incentives between healthcare providers and organizations is crucial for fostering strong clinical-business partnerships, especially in specialties like orthopedics. Read more in the article. 👇 #HealthcareInnovation #Orthopedics #ValueBasedCare #PhysicianLeadership
Why independent physicians are seeking strategic partners
physicianspractice.com
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