Despite increasing healthcare consolidation, the ASC industry has remained fragmented, independent surgery centers remaining in the majority as the driver of low costs, Becker’s reports.
Seventy percent of freestanding ASCs are independently owned and operated, according to VMG Health’s “Annual Healthcare M&A Report 2022.”
This number has remained relatively flat even throughout the COVID-19 pandemic. Seventy-two percent of ASCs were independent from 2020 to 2021, according to VMG Health’s “2019 Healthcare M&A Report” and “2020 Healthcare M&A Report“
On the other hand, physician medical groups are increasingly consolidating, according to VMG Health’s 2022 report. There were approximately 461 deals announced in the sector in 2021, a 145 percent increase from the 2020 volume. Of these deals, 70 percent of transactions were attributed to private equity firms.
VMG Health cites rising labor costs and rising supply costs, as well as increased competition and a transition to value-based care, as the reason that independent physician groups are turning to consolidation. Read more.
