Ambulatory surgery centers (ASC’s) have become known throughout the healthcare industry for providing a high quality, convenient and cost-effective experience for patients and payers alike. Therefore, as the U.S. healthcare system continues to shift toward value-based, outpatient care, it is in many ways a natural progression for hospitals to consider acquiring or partnering with surgery centers. In fact, for some hospitals, developing outpatient services may be a matter of survival. Many hospitals view ASCs as a strategic acquisition target because they provide high-quality, low-cost, and convenient settings for performing an array of sophisticated, same-day procedures. However, to ensure a successful ASC acquisition or partnership, there are many facets of an ASC that a hospital should first evaluate.
Hospital and ASC leaders should perform a due diligence process that involves an intensive and thorough look into the targeted ASC operations and finances. Understanding the operational nuances between an ASC and hospital is vital to the acquisition’s success. While weighing the difference between hospital outpatient departments and ASCs, the key operational considerations include:
There are many considerations that affect the financial statements of an ASC so each item should be looked at carefully during the due diligence process. Key financial considerations include:
As healthcare continues to grow into a retail business, outpatient surgery has become more and more appealing. If hospitals dig deep during the due diligence process, they can discover how a potential ASC acquisition or partnership can help them meet their long-term and strategic goals.
This post was first published May 16, 2017 and was updated July 29, 2020.