Credit Crisis Impact on Surgery Centers

The second biggest event for ASCs for 2008 (after the election) has to be the ongoing tumult created by the credit crisis and weakening economy. This overall financial challenge has led to a decrease in electronic procedures where patients have the ability to delay surgery. It has also led to more drastic reductions depending upon how "elective" the surgery is (e.g. cosmetic surgery). Further, the credit challenges and overall financial problems are leading employers to reduce payrolls and redouble their efforts to reduce healthcare costs. This is leading to payors who handle employee plans making the most aggressive efforts in years to reduce reimbursement rates.

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Scott Becker, JD, CPA

On the ASC mergers and acquisitions front, the credit challenges have not yet had a real negative impact on transactions. However, as it is early in the most difficult part of this economic slowdown and loss of stock market wealth, it remains to be seen what impact will be had — will deals still close; will pricing for deals remain at solid levels; will buyers be able to finance acquisitions? The credit crisis is having a large impact on large transactions — $100 million-plus.

All this stated, the ASC industry is among the very healthiest of industries around and is likely to remain fairly healthy.

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