The Federal Trade Commission has finalized a consent order requiring Ascension Health Alliance to divest seven Amsurg ASCs across five markets as a condition of its $3.9 billion acquisition of Amsurg, which closed in early June, according to an Aug. 25 news release from the FTC.
The seven centers span Nashville, Panama City, Fla., Tulsa, Okla., Waco, Texas and Wichita, Kan. Six will be divested to Optum’s SC Affiliates, while the Panama City center will go to Florida Gastroenterology Center. The FTC alleged the acquisition would limit competition for outpatient surgical services performed by gastroenterologists, ophthalmologists and orthopedists in those markets, potentially leading to higher prices and lower quality of care.
The final order also requires Ascension to provide prior notice to the FTC before acquiring any additional ASCs in the metro areas around the divested centers. The Commission voted 2-0 to approve the final order.
The deal, which expanded Ascension’s ASC footprint from 58 to more than 300 centers across 34 states, gives the St. Louis-based health system one of the largest ASC networks in the country.
Ascension has said it plans to keep Amsurg’s operating model largely intact rather than absorbing it into its own systems, with business development, managed care and supply chain named as the three primary synergy areas. Ascension CEO Eduardo Conrado has said he’s looking to leverage AmSurg’s presence in 10 existing markets while entering 25 more, citing a projected 10%-plus compound annual growth rate in the ambulatory sector compared with roughly 3% on the acute care side.
Amsurg’s history spans more than three decades, beginning as a consulting firm in 1986 before formally incorporating in 1992 with a physician-partnership model that gave physicians a 49% stake in each center. The company went through a series of major ownership changes, including a $2.35 billion acquisition of physician services company Sheridan Healthcare in 2014, a $10 billion merger with Envision Healthcare in 2016, a $9.9 billion KKR leveraged buyout in 2018 and Envision’s Chapter 11 bankruptcy filing in 2023, before emerging as a standalone entity with 250 surgery centers later that year.
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.
