The ASC saw several “splashy” transactions and acquisitions in Q1, according to an April 16 report by Nashville, Tenn.-based law firm Bass, Berry & Sims.
Here are four takeaways from the report:
1. In January, private equity firm Bain Capital placed a $27.25-per-share bid to acquire the remaining 71% of Nashville-based Surgery Partners, already partially owned by Bain. Surgery Partners previously explored other options for potential buyers, including Optum and other private equity firms. Devin O’Reilly and Andrew Kaplan, partners at Bain, noted that the firm is not interested in a deal that would require it to sell its stake in Surgery Partners, according to the report.
2. In late January, Dallas-based United Surgical Partners International, a subsidiary of Dallas-based Tenet Healthcare and the largest ASC operator in the U.S., partnered with Choice Care Surgery Center, a physician-owned ASC in Midland, Texas. Choice Care offers service lines including cardiology, gynecology, endovascular surgery, gastroenterology, orthopedic surgery, hand and plastic surgery and urology.
3. The report also highlighted a recent joint venture between Cincinnati-based Bon Secours Mercy Health System and Raleigh, N.C.-based Compass Surgical Partners. The joint venture expanded its reach by developing 30 new ASCs in Kentucky, Ohio, South Carolina, Virginia, Maryland, New York and Florida. Mercy and Compass also recently announced plans to open a cardiovascular ASC in Virginia.
4. The law firm also underscored the emergence of business models offering an alternative to traditional consolidation, highlighting the work of Ker Leader Medical. Ker does not acquire ASCs but aims to deliver operational support with the goal of “leveling the playing field” in the ASC space. Becker’s has reported on several ASC and physician group operators with similar business models.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.