Where Do Independent ASCs Stand Today?
Consolidation can feel like a looming threat to the ASC industry, but the majority of Independent ASCs stand strong. These statistics come from a Jan. 26 report from VMG Health. Here’s a snapshot of where ASC independence stands today:
- The Independence Factor: About 70 percent of ASCs are independent as of 2022.
- Strategic Partnerships: The number of surgery centers under partnership by a national operator increased from 1,752 in 2021 to 1,804 in 2022, according to the same report.
- Powerhouses of Independence: ASC giants United Surgical Partners International, AmSurg, SCA Health, HCA Healthcare, and Surgery Partners saw an increase of about 511 centers since 2011.
- Market Share: These five ASC chains account for around 22 percent of the market.
- Diverse Ownership: About 9 percent of ASCs were owned by other operators.
The ASC Revolution
In a healthcare landscape where costs tend to spiral upward, Ambulatory Surgery Centers (ASCs) have emerged as an exceptional anomaly. Over the past four decades, ASCs have not only improved quality and customer service but also slashed costs. Their success is a testament to their transformative model of healthcare delivery.
Traditionally, surgeries were confined to hospitals, leading to long wait times and extended recovery periods. However, in the US, physicians took the initiative to establish ASCs as a high-quality, cost-effective alternative to inpatient hospital care for surgical services. This pioneering move brought forth a wave of benefits.
Physicians found in ASCs the freedom to schedule procedures conveniently, create specialized teams, choose equipment tailored to their techniques, and design facilities that catered to their specialties. This newfound autonomy over their work environment and patient care quality explains the popularity of ASCs among physicians.
Today, almost all ASCs (90%) have some level of physician ownership, a testament to their involvement in making ASCs a reality. Moreover, hospitals are recognizing the value of the ASC model, with 23% of ASCs having ownership interest from hospitals.
Economic Impact of Independent ASCs: Savings and Job Creation
The economic significance of ASCs extends beyond quality care. In 2009, ASCs had a nationwide economic impact of $90 billion, including over $5.8 billion in tax payments. They also provided employment equivalent to approximately 117,700 full-time workers.
Cost-Efficiency: A Hallmark of ASCs
ASCs not only prioritize quality but also provide cost-effective care, saving Medicare, third-party payors, and patients billions annually. Medicare, for example, shares over $2.6 billion in savings with beneficiaries each year, thanks to lower ASC procedure rates compared to hospitals. If half of eligible surgical procedures moved to ASCs, Medicare could save an extra $25 billion over a decade.
The payment disparity between ASCs and hospitals has widened over the years. Medicare, for instance, now pays hospitals 82% more than ASCs for outpatient surgery. Patients also benefit from lower co-pays when they choose ASCs.
Transparency and Patient Satisfaction: Independent ASCs Lead the Way to Stand Strong
ASCs prioritize price transparency, providing patients with pricing information before surgery. Clear disclosures empower patients to evaluate and compare costs among healthcare providers.
Independent ASCs Stand Strong Today
In conclusion, independent ASCs stand strong today, as beacons of quality, cost-efficiency, and patient satisfaction in the healthcare landscape. Their transformative model offers a compelling alternative to traditional hospital-based care, driving cost savings and enhancing the overall patient experience. As ASCs continue to lead the way in outpatient surgical care, policymakers should recognize their value and promote policies that facilitate greater access to and utilization of ASCs.
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