ASCs Growth Potential in the Next Five Years
Over the past decade, the ASC market has undergone significant changes, including consolidation among ASC chains and an overall increase in surgery center development, leading ASCS growth potential to appear extremely promising. However, the proportion of independent surgery centers has remained relatively stable, with approximately 70 percent of centers maintaining their independence. As healthcare continues to experience consolidation, the question arises: What can we expect for independent ASCs in the next five years? In this article, we explore different perspectives and predictions from industry experts.
The Unique Resilience and ASCs Growth Potential
While healthcare consolidation remains a prevailing trend, experts believe that ASCs will be somewhat less impacted due to the unique ability of physicians to own their own facilities. In states with certificate of need regulations, there may be a higher degree of consolidation, whereas states without such regulations are likely to experience less consolidation compared to the hospital market. Adam Bruggeman, CEO of Texas Spine Care Center, believes that ASCs growth potential will continue to offer opportunities for surgeons, particularly in certain specialties.
According to Todd Currier, administrator of Bend Surgery Center in Cody, Wyo., while consolidation will continue, it may not occur as rapidly as in the past. Currier predicts that independent ASCs will increasingly join forces with health systems or management companies, contributing to growth through acquisitions and the development of new centers. This gradual pace of consolidation reflects the complexity of standardizing processes and integrating disparate systems within ASCs.
Contrary to expectations, Andrew Lovewell, CEO of Columbia Orthopaedic Group, envisions a future where more independent ASCs thrive and even break away from management conglomerates. Lovewell predicts that the “big five” ASC chains will continue to consolidate by acquiring smaller management companies, but the process will eventually stall due to the challenges of standardizing processes across diverse ASC systems. This outlook underscores the resilience and potential of independent ASCs.
The Changing Landscape of ASCs
ASC Consolidation and Focus on Quality Care:
As the ASC industry matures and the emphasis on high-quality, cost-effective care grows, Michael Patterson, president and CEO of Mississippi Valley Health, foresees an increase in ASC consolidation. This consolidation is expected to occur through formalized partnerships as ASCs align with their physician partners. Patterson believes this evolution will enable ASCs to meet the healthcare needs of their communities in an easily accessible and cost-effective manner.
With a growing need for outpatient strategies, health systems are pursuing diverse approaches. Some are partnering with national ASC chains to expand their networks, while others are establishing their own centers or joint ventures with local physicians. The acquisition of ASCs by hospitals will likely continue as they strive to retain joint and spine cases, address labor shortages, and improve administrative efficiencies. Vishal Mehta, president and managing partner of Fox Valley Orthopaedic Institute, also predicts increased interest from various players in ASC ownership as vertical integration in healthcare intensifies.
Dr. Vivek Mohan of Orthopaedic Spine Institute believes that ASCs will experience substantial growth in the coming decade, propelled by venture capital and private equity investments. He predicts that within three to five years, ASCs will witness rapid expansion, and within ten years, many centers may be consolidated regionally or nationally to maximize profitability and streamline delivery models for specialized pathways. Surgeons are encouraged to establish a vested interest in ASCs to position themselves advantageously in the evolving landscape.
ASCs Growth Potential Appears Promising
The future of independent ASCs appears promising despite the ongoing consolidation in the healthcare industry. While some experts anticipate gradual consolidation, others envision continued growth and the potential for independent ASCs to break away from management conglomerates. ASCs will play a crucial role in delivering high-quality, cost-effective care, and their ability to adapt and align with physician partners will be key to their success in the next five years. Surgeons, health systems, and investors alike should closely monitor these developments to make informed decisions and seize opportunities in the evolving ASC landscape.
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SoFlo Same Day Surgery Center has implemented various measures to ensure South Florida’s healthcare patient safety. This includes following strict infection control protocols and providing a comfortable and welcoming environment for patients. Furthermore, the center is constantly looking for ways to improve its services and enhance the patient experience. With a team of dedicated and skilled professionals, patients can expect to receive personalized care that meets their unique needs. The center also prides itself on offering a wide range of surgical procedures. From routine to complex, to cater to different patients’ needs. Overall, South Florida’s premier same day ambulatory surgery center is committed to providing the highest quality healthcare services to its patients.
South Florida Same Day Surgery Center serves Pompano Beach and South Florida, offering state-of-the-art ambulatory outpatient surgical services. Therefore, if you are a surgeon considering a move to an ASC, evaluate the specific needs of your practice. South Florida Same Day Surgery Center is a state-of-the-art facility with specialized staff and lower costs. Visit our new office located in Pompano Beach, Florida, and join our outpatient center. We are actively searching for new surgeons. So, start scheduling your surgeries with South Florida Same Day Today. Call (954) 532-1160 to speak with one of their skilled administrators.