ASC consolidation to continue to surge: 4 points
An Axios report details the upsurge in ASC consolidation and why surgery centers are an attractive option for heath systems and other business entities.
Here are four points:
1. Axios likens the ASC environment to a "high-profile assembly line," as these centers can efficiently perform a wealth of elective surgeries at a reduced cost.
2. Some of the leading ASC chains include Greenwood, Colo.-based Envision Healthcare; Deerfield, Ill.-based Surgical Care Facilities and Nashville, Tenn.-based Surgery Partners. The three management companies had a combined fiscal year 2016 revenue of nearly $3.7 billion.
3. While ASCs are continuing to joint venture with hospitals, other entities such as payers are seeing the opportunities in ASCs. SCA announced it was merging with Optum, a health services company and part of Hopkins, Minn.-based UnitedHealth Group, in January 2017.
4. Barclays' financial analysts say the healthcare industry can expect more joint venture activity coming down the pipeline. There are currently almost 5,500 ASCs in the nation. Of that figure, nearly 50 percent remain independent, allowing various entities to consider investment opportunities moving forward.
More articles on surgery centers:
51 things to know about the ASC industry | 2017
Mednax acquires Nevada ophthalmology practice: 5 things to know
Medical Facilities Corp. boosts 2016 revenue by 9.9% to $339.5M: 10 takeaways
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