Selling an ASC – would you go with a hospital system or a management company?

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Pete_J

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I am a non-doctor, but my mom and aunt (they are twins) are… :) However, they’re back in the old country and can’t help me here… I am doing a little market research for my paper and stumbled upon this awesome community. I was hoping you guys could share a few words of wisdom...


So, a quick background, as all these ASC management companies (AmSurg, United Surgical Partners etc.) rapidly grow, they need to expand, i.e. buy more and more ASCs and surgery hospitals, but there is only so many ASCs out there... On the other hand – and please correct me if I’m wrong – large hospitals are also increasingly interested in buying ASCs, since now with Obamacare they are under more pressure to reduce costs and ASCs’ costs are ~50% of hospitals’ for the same procedures (and I realize, ASCs cannot handle every procedure that hospitals can).


What I’m trying to wrap my head around is this: 1) how do ASC management companies compete with each other and with hospitals when going out and convincing doctors to sell? 2) Do doctors have some “inherent” preference for a ASC management company or a hospital, or it is mostly a matter of price and other terms (fixed salary, revenue split etc.)? 3) What is your guys’s sense about the landscape in general, is it increasingly more difficult and expensive for management companies to buy additional ASCs - or new ASCs keep opening to meet buyer's demand from management co's and hospitals? Where is this whole sector heading towards?


Very much appreciate any thoughts on this. Thank you in advance!

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