Health systems boost ASC investment




, Health systems boost ASC investment

Two-thirds of hospitals and well being programs plan to extend funding in ambulatory surgical procedure facilities, in keeping with a brand new report.

After a number of years of comparatively slower development, hospitals and well being programs are ramping up ASC building and conversions, with the share of suppliers planning to spice up ASC funding rising from 44% in 2019 to 67% in 2020, in keeping with Avanza Healthcare Methods’ survey of greater than 100 executives who have been polled previous to the COVID-19 pandemic. The first driver behind ASC growth was to extend outpatient surgical capability, in keeping with Avanza, which guides suppliers by way of ASC growth.

“Many hospitals are changing their outpatient departments or migrating circumstances to ASCs,” Avanza CEO Joan Dentler mentioned in ready remarks. “This was true earlier than the pandemic strengthened the enterprise case for each hospital having a minimum of one freestanding ASC in its portfolio.”

A fair greater proportion of bigger hospitals are increasing their ASC portfolio, with about 76% planning to commit extra sources. The 186-hospital investor-owned system HCA, as an illustration, is continuous to put money into ambulatory surgical procedure facilities.

“Our de novo ambulatory surgical procedure pipeline might be extra strong than it has been in a few years,” HCA CEO Sam Hazen mentioned in a latest investor name.

A Bain & Co. survey from Might also discovered a continued shift of care to ASCs. However the surgeons polled didn’t anticipate COVID-19 will speed up this shift when in comparison with development over the past two years.

Whereas most hospitals with ASCs function them as doctor joint ventures, solely a 3rd allowed employed physicians to put money into ASCs—the bottom quantity in three years, Avanza discovered. Seventy-nine p.c of hospitals desire to personal greater than 50% of the fairness of a three way partnership, which permits ASCs to leverage hospitals’ payer contracts to acquire increased reimbursement charges, in keeping with the report.

In the meantime, extra hospitals are constructing out their inside groups that handle ASCs. Solely 16% contracted with exterior administration corporations in 2020, down from 44% in 2018.