By Madeline Armstrong
ASCs continue to gain traction in value-based care while seeing increasing favor among consumers as a cost-effective alternative to hospital-based surgeries. These are the top deals impacting the number and concentration of ASCs nationwide so far this year.
1. Atrium Health and Advocate Aurora Health will combine their health systems
This $27 billion merger between Atrium Health, based in Charlotte, North Carolina and Advocate Aurora Health, based in Milwaukee and Downers Grove, Illinois, will create a 67-hospital health system with 158,000 employees and an expected increase in ASCs.
2. Tenet Healthcare now owns United Surgical Partners International
Tenet Healthcare, based in Dallas, Texas, paid $406 million for 100% of the shares. To do so, Tenet bought Baylor Scott & White Health’s 5% equity position in United Surgical Partners International (USPI). USPI currently runs 24 surgical hospitals and 410 ASCs. After this, Tenet now has a 7% share in the ASC market. Additionally, according to CEO Saum Sutaria, they expect to be operating about 600 ASCs by 2026.
3. Optum will buy Atrius Health
Atrius Health is an independent physician organization based in Auburndale, Massachusetts and has 30 locations and 645 primary care providers and physicians. Optum, part of UnitedHealth Group, will pay $236 million for Atrius Health, increasing the number of Atrius Health’s ASCs. This is a significant increase from the originally proposed $73 million. Additionally, Optum will invest $200 million in infrastructure and provider recruitment over five years.
4. Optum Ventures, CVS Ventures, Anthem and HLM Venture Partners investing in CareBridge
Recently, CareBridge closed a financing round that was $140 million and will begin expanding to over a dozen locations, increasing the number of ASCs. The company currently is valued at over $1 billion and has increased exponentially in the past year, from serving 1,100 patients to 19,000.
5. IRA Capital acquired Christus Surgical Hospital
IRA Capital, a private equity firm based in Irvine, California, paid $42 million for Christus Surgical Hospital based in Alexandria, Louisiana. The hospital is 84,000 square feet with 24 beds and 12 operating rooms. Additionally, there are 75 physician shareholders and 270 staff members. The hospital provides a number of services including neurosurgery, gastroenterology, orthopedics, ophthalmology, podiatry, pain management and urology.
6. United Surgical Partners International and United Urology Group will enter a joint venture partnership
The two signed an official agreement to form a partnership in 22 ASCs. United Surgical Partners International (USPI) will acquire a portion of United Urology Group’s ASCs in Maryland, Colorado and Arizona. This will add more than 140 urologists to USPI’s network. The transaction will be completed this year.
7. Surgery Partners is joining with ValueHealth
Surgery Partners, based in Brentwood, Tennessee, will deploy ValueHealth’s surgical programs at their locations. Additionally, more ASCs will be built. Surgery Partners will also manage ValueHealth’s interest in three ASCs as well as the four more currently in development. This move will also take advantage of cardiology in outpatient settings in addition to creating more comprehensive orthopedic services.
8. Joint venture formed by GI Alliance and United Surgical Partners International to acquire two Texas endoscopy centers.
The two centers acquired were GAB Endoscopy Center and South Plains Endoscopy Center. Both of these centers were co-owned by GI Alliance’s physician partners. GI Alliance has about 60 physicians with 24 different practices located in San Diego and Lubbock. Additionally, it supports over 665 gastroenterologists. USPI has more than 430 facilities and is a part of Tenet Healthcare Corp.
9. BHSH System invested in Atlas Healthcare Partners
Atlas Healthcare Partners manages ASCs, health systems and physicians. BUSH is an integrated health system and is the second health system to invest in Atlas Healthcare Partners this year, following Banner Health. Together, the companies will partner to operate an orthopedic ASC that will be located at the BUSH Health Integrated Care Campus at East Beltline in Grand Rapids.
10. Steindler Orthopedic Clinic sold Iowa facility for expansion
The building where the clinic is located is in Iowa City was sold for $11 million to Crown MedRealty Partners, a medical real estate firm. The clinic needed to build a 35, 880 square foot ASC that would cost $19.2 million. After securing a certificate of need, the sale of the building will enable them to expand.
