ASC Transactions & Valuation Issues

Sioux Falls, S.D.-based Sanford Health's is set to acquire physician-owned Black Hills Surgical Hospital and Black Hills Orthopedic and Spine Center — a move poised to reshape the region's healthcare landscape, Sioux Falls Live reported Nov. 14. 

A medical office building in Stamford, Conn., has sold for more than $19 million, according to a Nov. 21 report from the Hartford Business Journal.

A medical office building in Union City, Calif., has sold for $14.4 million, according to a Nov. 20 report from the San Francisco Business Times.

While the majority of ASCs remain independent, increased consolidation within the industry has led some leaders to contemplate linking with hospitals or larger health systems as a strategy for more market-proof ASC growth.

Dallas-based Tenet Healthcare, parent company of ASC chain United Surgical Partner International, will launch Commure's ambient AI platform across its physician network.

Here are five major organizations selling off ASCs in 2024:

The ASC industry is historically fragmented, with approximately 68% of facilities operating independently as of 2023. However, as consolidation gains traction, industry leaders are voicing concerns about the potential negative effects on administrators, physicians and patients.

Healthcare industry consolidation has mirrored trends in other sectors — promising efficiencies and stability but often delivering reduced competition, higher costs and limited access to care. 

Healthcare giant Optum, the parent company of ASC chain SCA Health, has grown rapidly in recent years and shows no signs of slowing down.

Optum, parent company of ASC chain SCA Health, has seen massive growth, including spending $31 billion on acquisitions in the last two years.