A projected surge in knee replacement surgeries will fuel the growth of the ASC industry in the coming years, according to Joe Simone, president of healthcare investment and development firm Simone Development Companies.
From 2020 through 2027, the global knee replacement market is set to increase from $8 billion to $12.9 billion at a compound annual growth rate of 7 percent, Renub Research reported in June.
In addition, a "revolution in knee replacement technologies" is allowing more minimally invasive surgeries to be done at the outpatient setting, Mr. Simone said in a July 26 news release.
"By 2040, the Centers for Disease Control and Prevention estimated that 78 million adults in the U.S. will be diagnosed with arthritis," he said. "For real estate developers, that means we will see greater demand for new ambulatory surgical centers as increasing numbers of the active elderly seek solutions to joint pain."
Growth of the ASC industry has been strong for years, but is expected to accelerate with the rise because of many peoples' reluctance to have procedures done at hospitals during the COVID-19 pandemic as well as the number of people that will require joint replacements in the coming years.
To capitalize on this growth, real estate developers are seeking partnerships with hospitals and other providers to "identify locations for new construction," according to Mr. Simone.