The increased range and complexity of services that ASCs offer has opened the door for a new era of collaboration between ASCs and hospitals, both of whom stand to benefit from partnerships.
Here are three other things to know about hospital and ASC partnerships in 2024:
1. A January survey of health system executives by VMG Health found that 60% of leaders were considering pursuing outpatient surgery joint ventures in 2024, the highest area of interest of any potential specialty partnerships. Additionally, Becker's reported on 55 hospitals and health systems opening ASCs in 2023.
2. Health system partnerships can be beneficial to ASCs in negotiating better rates with payers, as well as providing access to shared resources and partnerships with private equity or physician groups.
"Right now, we are renegotiating our payer contract because our rates are so low and we added service lines to the center," Kristopher Kitz, CEO of Wyatt Surgery Center in Tucson, Ariz., told Becker's. "And the only reason why they will speak with us and even entertain materially better rates is because we have a health system affiliation."
3. In addition to the cost-savings power of migrating procedures to ASCs, they are often more preferable settings for both patients and physicians.
"[Hospitals] are either going to be part of that or they're going to lose in that race," Jim Freund, managing partner for Physician Transaction Advisors, told Becker's. "So you see all the big consolidators out there, and even the smaller ones are creating partnerships with healthcare systems, whether it's an independent or a joint venture group."
For example, Nashville, Tenn.-based Tenet Healthcare has been quickly selling off hospitals as growth quickly shifts to its ASC arm, United Surgical Partners International.