Here are 17 statistics on procedure, valuation and earnings growth in the expanding ASC market:
The shift from inpatient to outpatient surgery is set to drive ASC market growth through 2026, according to the Health Industry Distributors Association's 2018 Ambulatory Surgery Center Market Report cited by Relias Media.
Four report takeaways:
1. ASC outpatient procedure volumes will grow an estimated 16 percent through 2026.
2. ASCs can expect to see growth opportunities in spine, orthopedic and prostate cancer procedures.
3. Thirty-five percent of ASC providers said they experienced an increase in surgical volumes in 2017, and 57 percent anticipated an increase in 2018.
4. The report predicts the ASC market will grow from $36 billion to $40 billion between 2018 and 2020.
Kaufman Hall's June 2018 ASC Industry Flash Report includes predictions on new procedure growth at ASCs, the transaction market and more.
Key details from the report:
5. Rising consumerism may drive more patients to ASCs. Patients are recognizing the financial benefits of undergoing procedures in ASCs.
6. Cardiology and orthopedic procedures such as electrophysiology and interventional cardiology may become more common in ASCs over the next five years. Payer incentives and improved technology are causing the shift.
7. The ASC market has a positive outlook. Kaufman Hall predicts hospitals, health systems, physicians and insurers will continue pursuing ASC investments, spurring increased consolidation and competition.
HealthCare Appraisers' 2018 ASC Valuation Survey provided insight into the ASC market and surgery center characteristics. Fifteen respondents representing over 700 surgery centers in the U.S. responded to HealthCare Appraisers' survey.
Premiums paid for ASCs with certificates of need:
8. No premium: 14 percent
9. Less than .25 multiple: 0 percent
10. .26 to .50 multiple: 36 percent
11. .51 to .75 multiple: 29 percent
12. .76 to 1 multiple: 21 percent
Earnings growth expected in first several years post-acquisition:
13. Zero to 3 percent per year: 13 percent
14. 3.1 to 6 percent per year: 33 percent
15. 6.1 to 9 percent per year: 33 percent
16. 9.1 to 12 percent per year: 7 percent
17. More than 12 percent per year: 13 percent