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. 

Advertisement

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. 

 

Advertisement

Next Up in ASC Transactions & Valuation Issues

  • Becker’s reported on 39 hospital mergers and acquisitions in 2025, ranging from rural hospital partnerships to massive, multi-state system expansions. …

  • Brewer, Maine-based Northern Light Health will close its primary care practice in Castine on Feb. 27, citing staffing challenges, declining…

  • The dynamics shaping mergers and acquisitions within the ASC space are constantly shifting as corporate entities push consolidation efforts and…

Advertisement

Comments are closed.