Hospitals favoring physicians as ASC partners: 4 survey details

Joint ventures with physicians are hospitals' preferred method for opening ASCs, according to a survey from outpatient healthcare group Avanza Healthcare Strategies.

Avanza developed the survey with HealthLeaders Media, polling 119 senior executives.

Four things to know:

1. Forty-one percent of respondents said they own or are affiliated with a freestanding ASC, with three-quarters of those partnerships being joint ventures with physicians.

2. Three out of four respondents said they plan to increase their ASC investments, and 30 percent said they'll expand ASC investments when the chance arises as a means to reduce costs and increase physician relationships.

3. Fewer hospitals and health systems are partnering with third-party investors to own and operate ASCs, with equity-based partnerships dropping 9 percent in 2019.

4. Contracts with third-party management companies are down 21 percent this year.

"The cost-benefit of outside management and the development of in-house expertise may explain why hospitals and health systems are turning away from equity-based partnerships and long-term contracts with third-party management companies. Both are signs of a maturing marketplace," said Avanza President and CEO Joan Dentler.

More articles on transactions and valuations:
UnitedHealth Group gets a new CEO & more — 10 ASC industry notes
New York medical group proposes 2-hospital merger, turning one into outpatient hub: 5 details
Florida hospitals scoop up outpatient centers, practices for combined 39% net income growth

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