Health systems accelerate ASC partnerships amid shift to outpatient care

Editor's Note

As healthcare continues to transition from inpatient to outpatient settings, large health systems are increasingly forming partnerships and joint ventures to develop and manage ambulatory surgery centers (ASCs), Becker’s ASC Review August 16 reports. Per the outlet, health systems have historically been hesitant to embrace ASCs due to concerns about financial impacts and competition. But according to Aric Burke, CEO of Atlas Healthcare Partners, health systems now see ASCs as integral to their growth and service expansion strategies.

Several major health systems are leading this shift, including:

• Ascension, based in St. Louis, is focusing on ASCs as part of its growth strategy after experiencing a $3 billion operating loss in fiscal 2023. Ascension has added 21 ASCs in the last 3 years and aims to increase this number to over 100 in the coming years.
• Bon Secours Mercy Health, a 48-hospital Catholic system, has entered a joint venture with Compass Surgical Partners to build over 30 ASCs across several states. This partnership is seen as vital for the financial viability of Bon Secours' ASC growth, with a focus on physician partnerships and managed care contracts.
• HCA Healthcare, one of the largest ASC operators in the US, reported significant growth in its outpatient surgery business, despite a general decline in surgical volume. HCA finished 2023 with 124 ASCs and continues to expand, including the recent opening of the Silicon Valley Surgery Center in California through a joint venture with more than 50 physicians.
• MultiCare Health System has partnered with Atlas Healthcare Partners to develop and manage an ASC network in the Pacific Northwest. This partnership is MultiCare's third joint venture with Atlas since 2019.
• Tenet Healthcare is rapidly transforming its portfolio by selling hospitals while aggressively investing in its outpatient business. Tenet's United Surgical Partners International, the largest ASC chain in the country, plans to expand from 520 ASCs to 575—600 facilities by the end of 2025.

These developments highlight a growing trend and significant shift in strategy, as health systems now view ASCs as a crucial part of their care delivery networks.