Many ASCs on track for 10%+ revenue growth in 2021 over 2019; here's why

Many ASCs anticipate their revenue to grow substantially in 2021 compared to before the pandemic, according to a survey by Becker's ASC Review.

The survey, which received 67 responses, polled ASC leaders on revenue projections for their centers in 2021. 

Forty-three percent of survey respondents said they predict a more than 10 percent increase in revenue compared to 2019. 

"The awareness of the quality, efficient and affordable care offered in the ASC setting has been brought to the forefront as an outcome of COVID-19," Trina Cole, administrator of Saint Luke's Surgicenter Lee's Summit (Mo.), told Becker's ASC Review. 

Of the survey respondents, 33 percent of centers projected a revenue decline: 24 percent of respondents projected a less than 10 percent decrease, and 13 percent a more than 10 percent decrease.

Ten percent of respondents said they anticipate 2019 and 2021 will have equal revenue. 

This growth is attributed to the addition of outpatient surgeries approved by CMS, giving ASCs the opportunity to expand their surgical offerings. 

Jarett Landman, CEO of The Orthopedic Surgical Center of the North in Peabody, Mass., for example, told Becker's ASC Review that minimally invasive total joints and spine "are both the present and the future" for the ASC industry. 

"Very infrequently in healthcare are all interests aligned between provider, facility, patient and insurer, but I think all would agree that this transition has been valuable to all parties," he said. 

In terms of total revenue, 30 percent of respondents predict their ASC's 2021 revenue to be between $11 million to $20 million.

Twenty-four percent anticipate revenue between $2 million and $5 million, and 16 percent between $21 million to $50 million.

Tracy Helmer, administrator at Seven Hills ASC in Las Vegas, told Becker's ASC Review that ASC financial success will hinge on the efforts to support patients' outpatient options. 

"Patients are leery of going to hospitals due to pandemic concerns, so ASCs can provide that peace of mind," he said. 

For other ASCs, its facility expansion that drives their success. 

Lori Martini, CASC, administrator of SOG Surgery Center in Tupelo, Miss., said she attributes her center's growth to physician recruitment and satellite clinic expansion.

"We are fortunate to have strong marketing efforts and community outreach, which has helped us become recognizable as the leader in orthopedic care in the North Mississippi region," she said.

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Webinars

Featured Whitepapers

Featured Podcast