Ambulatory Surgery Market Continues on Path to Growth

VMG Health’s 2023 Healthcare M&A Report offers valuable insights into the future of the ambulatory surgery center (ASC) market that underscore the continued growth of this healthcare sector. Between 2011 and 2022, for example, the total number of Medicare-certified ASCs in the United States grew at a compound annual growth rate of 1.3%, which translated to an increase from 5,217 centers to 6,028 Medicare-certified ASCs.

According to the report, “The ASC industry continues to remain highly fragmented with approximately 70% of freestanding ASCs being independently owned and operated. The remaining 30% of the ASC industry is owned and operated by large players including AMSURG, which merged with Envision Healthcare; United Surgical Partners International (USPI), parent company Tenet Healthcare (Tenet); SCA Health (SCA, owned by Optum/UnitedHealth Group), HCA Healthcare Ambulatory Surgery Centers Industry Overview (HCA); Surgery Partners, Inc. (54% owned by Bain Capital); and other multi-site owners/operators.”

The growth trend of recent years underscores the fact that certain higher acuity procedures traditionally performed in an inpatient or hospital outpatient department (HOPD) setting clearly have shifted to the freestanding ASC setting. In fact, the ASC environment continues to be an active arena as major operators consolidate and look for new opportunities.

VMG Health reports, “In addition to the legacy operators, we are beginning to see other types of investors show interest in the marketplace. ASCs are expected to remain attractive targets over the long-term investment horizon due to their ability to generate consistent, distributable cash flows and to contribute to lower cost of care in the United States. Overall, ASC transactions of all types are expected to continue the positive momentum…” OSM