Big ASC chains’ secret to growth

ASC chains are looking to higher-acuity procedures over other growth strategies to facilitate revenue boosts, according to VMG Health’s 2023 mergers and acquisitions report released March 21. 

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The migration of high-acuity procedures to the ASC setting increased in 2022, particularly in orthopedics, cardiology and higher-acuity spine procedures, according to the report. Orthopedics was the most common specialty served by ASCs in 2022. 

In an Oct. 20 earnings call, Saum Sutaria, MD, CEO of Dallas-based Tenet Healthcare, USPI’s parent company, said the chain is doubling down on its high-acuity growth strategy. He cited growth at an ASC in Tennessee, where the center boosted revenue by 46 percent by replacing high-volume, low-acuity procedures with high-acuity orthopedic cases.

Because of this growth, orthopedic procedures made up 20 percent of the company’s year-to-date volume. 

UnitedHealth Group’s Optum, parent company of ASC chain SCA Health, is also looking to higher-acuity surgical procedures to lead growth, UnitedHealth Group CFO John Rex said in an Oct. 14 earnings call

These high-acuity cases give ASCs the opportunity to make more money per case, and ASC chains are taking advantage of the opportunities, the report said. 

 

At the Becker's 23rd Annual Spine, Orthopedic and Pain Management-Driven ASC + The Future of Spine Conference, taking place June 11-13 in Chicago, spine surgeons, orthopedic leaders and ASC executives will come together to explore minimally invasive techniques, ASC growth strategies and innovations shaping the future of outpatient spine care. Apply for complimentary registration now.

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