As costs rise and the industry increasingly consolidates, physician practices are increasingly looking to hospitals, health systems and commercial groups for financial security, according to a report published June 7 by the American Hospital Association.
ASC Transactions & Valuation Issues
Kansas City-based ValueHealth has partnered with Naples, Fla.-based NCH Healthcare System to develop a 12,000-square-foot ASC in Naples on the NCH Baker Hospital campus.
Harry Severance, MD, an adjunct assistant professor at Durhan, N.C.-based Duke University School of Medicine, joined Becker's to discuss how physicians increasingly moving to employed models has shifted the workforce to what he calls a "seller's market."
Falls Church, Va.-based Inova Health System has acquired another local specialty physician practice, expanding its footprint and services, according to a June 6 report from the Washington Business Journal.
While there are several major ASC management and partnership companies in the U.S. — including SCA Health, Atlas Healthcare Partners and AmSurg — one company is outpacing the rest in size and patient encounters.
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Thirty percent of the ASC industry is owned and operated by big surgery center chains, according to VMG Health's "Annual Healthcare M&A Report 2023."
ASC valuation multiples have been fluctuating in transactions over the last year, according to a report from VMG Health's Annual Healthcare M&A Report 2023.
According to Michael Meyers, president and CEO of Manhasset, N.Y.-based medtech company Meyers & Gerard Medical, Optum's quick growth and acquisition of physician groups is a cause for concern.
Optum, parent company of ASC chain SCA Health, is the largest employer of physicians in the country.
Amish Oza, MD, medical director of Marion, Ohio-based Midwest Internal Associates, has purchased an 8,500-square-foot medical office building that formerly housed Midwest Spine & Pain for $1.85 million, according to a June 1 report from Columbus Business First.