Cardiology has the lowest percentage of physicians in private equity-affiliated practices when compared to gastroenterology and orthopedics, according to a recent study by Avalere and the American Independent Medical Practice Association.
ASC Transactions & Valuation Issues
Physicians are concerned about the erosion of autonomy amid accelerating industry consolidation and migration to employed models.
Dallas-based Tenet Healthcare embarked on a new era five years ago by reducing its debt profile and redirecting focus to its ASC arm, United Surgical Partners International, CEO and Chair Saum Sutaria, MD, said.
Optum is the parent company of Deerfield, Ill.-based ASC chain SCA Health, which has a portfolio of more than 320 ASCs and 9,200 physicians.
The ASC industry is facing new forces in consolidation: large health systems and independent ASC groups with non-traditional business models.
Advertisement
Retail giant Amazon continues to expand into healthcare, emerging as a significant disruptor in the industry and a key player to watch.
A July 2023 study by RAND found that most physicians working in vertically integrated hospitals or health systems were 65% less likely to use ASCs for procedures, compared to physicians who were never a part of a vertically integrated system.
Assembly bill 3129 was passed by the California Legislature in August, and would give the attorney general authority to review and approve or deny transactions between independent physician practices and private equity firms.
A medical office building in North Smithfield, R.I., has sold for $1.95 million, according to a Sept. 18 report from Providence Business News.
Consolidation is on the rise across healthcare, and ASCs are no different. But how does consolidation impact the future and function of ASCs?