Top 10 states for new ASC construction

A physician or organization looking to build a new ASC has to think about several factors when settling on a location. Prominent among them are the area's average physician pay, regulatory environment, amount of competition and the cost of construction.

Becker's ASC Review has compiled data from the 2020 Census, Bureau of Labor Statistics, state regulations on new ASCs and average construction cost estimates for medical office buildings to create a ranking of the top 10 states for new ASC construction.

 

State

Physicians Per 100k Population

Avg Physician Pay

Average Sq. Ft. Cost to Build MOB

Becker's Composite

1. South Dakota

23.72

$269,100

$470

4.26

2. Montana

21.61

$271,560

$485

3.71

3. Wyoming

21.51

$263,540

$495

3.42

4. Idaho

17.39

$246,220

$485

3.34

5. Indiana

25.60

$260,540

$485

2.98

6. Utah

22.01

$239,450

$485

2.74

7. Arizona

26.11

$240,750

$480

2.65

8. Maine

36.22

$279,700

$475

2.64

9. Nebraska

29.27

$230,330

$460

2.29

10. Georgia

24.74

$251,300

$480

2.17

 

Methodology

To convert each dataset into comparable numbers, Becker's calculated the standard deviation and average of each, which were both used to determine the Z-scores for every value. The Z-score is a measure of how far a point of data is from its parent dataset's average.

For "average physician pay," higher numbers are clearly better, but for "physicians per 100K population" and "average sq. ft. cost to build MOB," golf rules apply: the lowest score wins. In calculating the Becker's composite, the signs were reversed on the Z-score categories playing by golf rules, which were then summed with the physician pay Z-score and a value reflecting the restrictiveness of state regulations.

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