ASC leaders continue to navigate a competitive ASC environment as hospitals, health systems and corporate interests become increasingly invested in the outpatient market.
Here’s what three leaders recently told Becker’s about what consolidation efforts are having the most significant impact on the industry.
1. Steve Hockert, chief development officer of Southlake, Texas-based Solara Surgical Partners recently spoke with Becker’s regarding Solara’s new partnership with Orlando (Fla.) Health to launch a national ASC joint venture.
The partnership also reflects what Mr. Hockert described as a “foundational shift” in Solara’s growth strategy from its historical approach of forming joint ventures with independent physicians toward deeper health system affiliations. This shift is being driven in part by a years-long decline in independent practice.
“What was available then isn’t as available today,” he said. “You have to pivot with the changes to continue to grow and survive. Health system alignment is a priority focus. We don’t want to dismiss independent physician opportunities, but private equity consolidation and health system acquisitions have made those opportunities far less frequent.”
2. Adam Berry, CEO of Woodbury, Minn.-based Summit Orthopedics, told Becker’s that while consolidation is increasing at a macro level, some markets are seeing a pendulum swing back towards independence.
“If you look at the broad brush, you’re going to see more consolidation,” Mr. Berry said. “But there’s so much geographic individualization that’s happening, because there are certain markets where we’re seeing people leaving the health systems and going to an independent market, or leaving the health system ASC and coming to an independent ASC.”
3. Prem Ramkumar, MD, medical director of technology and clinical innovation at Los Angeles-based Commons Clinic joined Becker’s to discuss his organization’s venture-backed, physician-owned model and how it serves as a counterweight to traditional healthcare consolidation.
Commons Clinics’ model shifts surgeries to ASCs and lowers costs through bundled pricing, giving private practice physicians “a chance to actually fight back against consolidation.”
“It’s not just going to be orthopedics,” he said. “It’s going to be GI, cardiology, ASC-based practices in various cities. This is a physician-driven model and a very scalable product — the only counterbalance to these health systems, and it’s very reproducible.”
