Hospital execs see growth potential in ASC JVs

A growing number of hospital leaders are exploring ASCs as a pathway for growth, with 63% open to joint ventures in outpatient surgery ventures, according to a report from VMG Health published Jan. 9.

The survey includes responses from 73 health system executives, including CEOs, CFOs and COOs, among other executive titles. 

Here are six more findings:

1. Ninety percent of hospital leaders anticipate financial performance in 2025 will be similar to or better than 2024, driven by factors such as increased patient utilization (77%) and success in commercial contracting (56%).

2. Eighty-four percent of respondents foresee reduced merger and acquisition activity in 2025, citing challenges like misaligned buyer-seller expectations and regulatory barriers.

3. Only 28% of hospital executives are considering partnerships with private equity firms.

4. Just under half (49%) of hospital executives identified clinical staffing shortages as a concern, a significant drop from 77% in the previous year. However, issues such as physician enterprise losses and supply chain disruptions remain critical.

5. Sixty-four percent highlighted increasing physician subsidies as a pressing challenge, while 41% noted difficulties in redesigning compensation models. 

6. A third (33%) of hospital executives plan to expand participation in value-based care models, with 23% expecting more Medicare Advantage contracts.

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