Private equity firms have long used ASCs as investment vehicles, and after courting key ASC specialties like gastroenterology, orthopedics and ophthalmology, they could be looking to cardiology as a new area of growth, reports Becker’s.
“2023 is going to be an interesting year for ASCs. On one hand, the financial climate of high interest rates can potentially limit the borrowing power of firms, which can present capital challenges,” said Neal Kaushal, MD, chief of gastroenterology and chair of the department of medicine at Roseville, Calif.-based Adventist Health. “On the other hand, private equity has gained such a strong foothold in this area that I do not see this slowing down anytime soon, despite short-term economic changes in the markets.”
It is estimated that the U.S. cardiovascular market size sits around $50 billion, according to a report from JD Supra. Additionally, Medicare is rapidly approving additional cardiac procedures at ASCs. By the mid 2020s, 30 to 35 percent of cardiology procedures are expected to occur in the ASC setting. Read more.
