In the ever-evolving landscape of healthcare, strategic investments in ambulatory surgery centers (ASCs) have become a focal point for health system executives. The ASC market has witnessed significant growth and activity over the past two decades. This growth is driven by several factors, including the addition of new procedures to the ASC Covered Procedures List and the shift of higher-acuity procedures to outpatient settings.  

This article highlights valuable insights for executives looking to enhance their ASCs’ strategic planning and execution.

 

For more detailed insights, including data on reimbursement, growth, and valuation multiples, watch the full webinar, “Health System Strategic Considerations: Investing in ASCs,” from VMG Health. 

Strategic & Financial Blueprint 

Effective strategic execution is critical for the success of ASC investments. Health systems must conduct a thorough situational assessment, develop a long-range financial plan, and identify strategic gaps.  

  1. Situational Assessment: Health systems must evaluate both external and internal factors that impact their ASC strategy. This includes understanding the physician landscape, state regulations (i.e., Certificates of Need), competitors, demographics, and payer pressure. 
  2. Vision Development & Long-Range Financial Planning: Establishing a clear vision and a comprehensive, long-range financial plan is essential for sustainable success. Include evaluating growth opportunities, engaging board leadership, aligning with physicians, conducting location assessments, and understanding the associated financial impacts as key steps in this process. 
  3. Strategic Gaps: Identify and address strategic gaps through evaluating management talent, rate structures, ASC managed care contracts, and capital availability. These gaps create growth barriers and addressing them helps ASCs align resources and position themselves for long-term success. 
  4. Practical Execution Steps: Health systems should identify their ASC development team, determine the pace of execution, and identify if other resources are required. This may include the need for a management partner based on factors such as managed care rates, management depth and talent, capital, and market opportunities. 

Maximizing ASC Potential 

The ASC market presents significant opportunities for health systems to enhance their strategic planning and execution. By understanding the key market considerations, reimbursement trends, industry consolidation, valuation trends, and strategic execution steps, executives can make informed decisions that drive sustainable growth. For a more comprehensive understanding of these strategic considerations, watch full webinar: “Health System Strategic Considerations: Investing in ASCs.”