Why 5 ASCs closed in 2024

Becker’s has reported on more than five ASC closures so far in 2024. 

These closures highlight a range of challenges, from operational inefficiencies to financial pressures and workforce shortages. 

Here’s a closer look at the reasons behind the closure of five ASCs:

1. Enhancing service efficiency

Baptist Health-Fort Smith announced plans to close its outpatient surgery center in Fort Smith, Ark., as part of an effort to integrate ASC operations into its main hospital’s operating rooms. According to Jeff Carrier, regional president for Baptist Health Fort Smith and Van Buren, the move aims to streamline services and enhance operational efficiency.

2. Physician retirements and staffing challenges

The Battle Creek (Mich.) Endoscopy and Surgery Center is set to close permanently on Dec. 31, resulting in 17 layoffs. Administrator Bridget Dove told WWMT the retirement of three physicians and the inability to recruit replacements were the primary reasons for the closure. 

Ms. Dove emphasized the difficulty of hiring new physicians amid a nationwide gastroenterologist shortage, compounded by recent graduates favoring hospital employment over private practice or independent ASCs.

“Half of my physicians work for Bronson [Health System], and the other half work for Ascension,” Ms. Dove explained. “This split made it nearly impossible to fill the vacancies caused by retirement.”

3. Provider Departures

CommonSpirit Vascular Surgery Penrose, a clinic within Penrose Hospital in Colorado Springs, Colo., permanently closed on Sept. 6 following the departure of its providers.

The clinic, which employed two surgeons, two physician assistants, and one nurse practitioner, has left patients struggling to find care. In a statement shared with Becker’s, Lindsay Radford, a spokesperson for CommonSpirit Penrose Hospital, acknowledged the impact of the closure:

“CommonSpirit Penrose Hospital is grateful to Dr. William Chambers and Dr. William Fry for their decades-long service to our patients in the Colorado Springs community. We are disappointed they chose to leave the hospital, and we recognize the inconvenience this causes their patients. We are actively working to connect these patients with high-quality medical care.”

4. Financial struggles

The Rocky Mountain Eye Center in Pueblo, Colo., shuttered all six of its clinics on July 31 after 32 years of operation. The decision comes as the center faces significant financial strain in the aftermath of the COVID-19 pandemic. The closures will affect 77 employees.

Similarly, the Canfield (Ohio) Surgery Center, operated by Bon Secours Mercy Health Ambulatory Ventures and Compass Surgical Partners closed in June. Despite business picking up, the ASC was projected to lose $2.5 million this year, according to employees.

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