Becker's ASC Review

6 ASC MANAGEMENT Top 5 ASC chains by market share By Laura Dyrda T here is a huge growth opportunity for ASC chains, as around 70 percent of freestanding surgery centers remain indepen- dent, according to VMG Health's "Annual Healthcare M&A Report 2022." irty percent of ASCs are owned by leading national chains and oth- er operators, including private equity firms. Here is the market share breakdown for the large national chains: 1. United Surgical Partners International, part of Tenet Healthcare: 7.3 percent 2. AmSurg, part of Envision Healthcare: 4.2 percent 3. SCA Health, part of Optum: 4.2 percent 4. HCA Healthcare: 2.5 percent 5. Surgery Partners, backed by Bain Capital: 2.3 percent e five leading ASC chains have big plans for the future. Tenet ex- ecutives laid plans to grow USPI to acquire or develop more than 150 ASCs over the next three years to exceed 600 ASCs in its portfolio by the end of 2025. SCA Health, Surgery Partners and AmSurg have also been adding surgery centers and health system partnerships to strengthen their core business. Growing through acquisitions won't be cheap. VMG Health reported observing 25 transactions in 2021 with the median EBITDA multiples around 7.8x. Multiples at the low end were 7.5x, and multiples at the high end were 8.4x for individual ASCs. e report concludes: "ASCs are expected to remain attractive targets over the long-term investment horizon due to their ability to generate consistent distributable cash flows and to contribute to lower cost of care in the United States. Although the removal of certain higher acu- ity procedures may result in a near-term disruption to certain ASCs, a continued increase in growth and consolidation in this subindustry is expected throughout the remainder of 2022 and beyond." n Compass Surgical Partners hires 3 execs to meet ASC market demand By Claire Wallace C ompass Surgical Partners, an ASC developer and manager, has added three new members to its team to help its hospital and surgeon partners adapt to growing market demand. Compass welcomed former United Surgical Partners International Vice President of Development Jason Mangus as its senior vice president of business devel- opment for the western U.S. It also welcomed former Optum Vice President Sarah Cwiak as vice president of business development for the east-central region. Former National Cardiovascular Partner Senior Director of Business Development Austin Kroschel has joined Compass as its vice president of business development for the west-central region. "Given the positive market reception to our proven high-performance partnership model, we believe this investment in additional resources will benefit our partners in our mutual quest to positively improve pa- tients' lives," DJ Hill, Compass CEO, said in a Sept. 15 press release. n Intermountain hospital opens orthopedic, urology focused ASC By Riz Hatton S t. George (Utah) Regional Hospital, which is part of Salt Lake City-based Intermountain Healthcare, opened an orthopedic and urology focused ASC, St. George News reported Sept. 19. The St. George Surgery Center has four specialized op- erating rooms offering same-day urology and orthope- dic surgeries. "We know the cost of care is high, and this new facility will be a major step in making it more affordable," Zach- ary Leitze, MD, an orthopedic surgeon at the ASC, told St. George News. "This facility can potentially reduce the cost of surgery by 20 percent to 50 percent for common orthopedic procedures." n $194M Chicago ASC cuts ribbon By Riz Hatton T he University of Illinois Chicago has cut the ribbon on a $194 million project that features an ASC, the aca- demic health system said Sept. 13. The 200,000-square-foot building will also house the Illinois Eye and Ear Infirmary. It is expected to host 600 to 800 pa- tients a day and includes eight operating rooms and eight procedure rooms. It also features 182 rooms for gastroenterology, ophthalmol- ogy, otolaryngology, transplant and urology care specialty clinics, and a pharmacy. n

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