Trends in ASC industry as highlighted by one expert

Editor's Note

As outpatient surgery continues to gain popularity and the need to cut costs persists, Becker’s ASC Review sat down with Jim Freund, managing partner for Physician Transaction Advisors, to discuss the below three key trends in the ambulatory surgery center (ASC) industry, per Becker’s July 18 article.

• Number of procedures in ASCs is growing.

Freund pointed to the continued migration of procedures from inpatient to outpatient settings, primarily due to significant cost savings. According to Blue Health Intelligence, procedures can cost up to 58% more at hospital outpatient departments compared to ASCs or physician offices. "There’s no question there’s going to be more and more cases and procedures done in outpatient settings," Freund told Becker’s.

• Hospital partnerships are also growing.

Hospitals are increasingly embracing ASCs, leading to more partnerships and joint ventures. A survey by VMG Health found that 60% of health system executives are considering outpatient surgery joint ventures in 2024. In 2023, 55 hospitals and health systems opened outpatient centers. Freund emphasized that hospitals must adapt or risk falling behind, noting that both large and small consolidators are creating partnerships with healthcare systems. He stressed that hospitals need to allow physicians the autonomy that makes ASCs attractive.

• Increased consolidation.

Despite the fragmented nature of the ASC industry, with 68% of ASCs being independently owned, Freund expects consolidation to increase. Larger groups can offer independent physicians the necessary scale to compete, especially as the healthcare industry becomes more consolidated. Freund highlighted the challenges of remaining independent in terms of cost, technology, and staffing, suggesting that consolidation may be a necessary strategy for many ASCs.