Issue link: https://beckershealthcare.uberflip.com/i/1514738
30 TRANSACTIONS Hospitals close clinics as financial pressures mount By Laura Dyrda H ospitals continue to face financial headwinds heading into 2024, and some are closing clinics or reducing outpatient services as a result. The last 12 months were financially challenging for many hospitals and systems across the U.S., as inflation pushed supply and wage costs up while reimbursement growth hasn't kept up. ASCs are in a similar situation, but at a smaller scale. Hospitals have cut services throughout the year to keep up with financial challenges and now some are closing clinics. Marietta, Ga.-based WellStar Health System plans to close down a clinic in Atlanta, which is located in a previously closed hospital, to begin the new year. PeaceHealth, based in Vancouver, Wash., closed a clinic in Camas, Wash., Dec. 15 and North Arkansas Regional Medical Center in Harrison, Ark., closed two local clinics and two urgent care centers in recent weeks. In mid-December, Astria Health in Sunnyside, Wash., ended heart procedures and interventional cardiology services at its clinics due to increased costs and continued staff shortages. When hospitals close clinics and services, ASCs in the area have the opportunity to expand their outpatient services and potentially bring on any cut staff. The closures may also indicate an influx in patients and additional challenges for providing access to care in the community. n Optum, SSM end partnership By Paige Haeffele U nitedHealth Group-run Optum and St. Louis- based SSM Health have terminated their administrative partnership, an SSM Health spokesperson confirmed to Becker's. The partnership, announced in October 2021, was formed with goals of improving inpatient care management, digital transformation and revenue cycle management. The health system declined to provide any additional information on the split when asked Jan. 3. Optum formed similar partnerships with three other health systems in the last year: Brewer, Maine-based Northern Light Health, Owensboro (Ky.) Health and ProHealth Care. It also added a total of 20,000 physicians and acquired three physician groups in 2023, ending the year with nearly 90,000 affiliated physicians. Optum's ASC operator branch, SCA Health, now has more than 320 surgical facilities and 9,200 physicians, establishing itself as a leading force in the ASC industry. Optum is planning significant moves in 2024. The company reportedly is considering the acquisition of the physician-owned Corvallis (Ore.) Clinic, which operates 11 locations and an ASC. n ASC chains by the numbers By Patsy Newitt A SC chains such as Tenet Healthcare's United Surgical Partners International and Optum's SCA Health are rapidly growing as the industry consolidates. Here are key stats to know about ASC chains. e 10 largest ASC chains by number of centers: • USPI (Dallas): 475+ • SCA Health (Deerfield, Ill.): 320 • AmSurg (Nashville, Tenn.): 256 • HCA Healthcare (Nashville, Tenn.): 150+ • Surgery Partners (Brentwood, Tenn.): 127 • PE GI Solutions (Jamison, Pa.): 90+ • Azura Vascular Care (Malvern, Pa.): 72+ • ValueHealth (Leawood, Kan.): 50+ • Covenant Physician Partners (Nashville): 48+ • American Vision Partners (Phoenix): 20+ e six largest ASC chains by number of affiliated physicians: • USPl: 11,000+ physicians • SCA Health: 9,200 physicians • Surgery Partners: 4,600 physicians • HCA Healthcare: 3,200 physicians • ValueHealth: 3,000+ physicians • SurgCenter Development: 2,500 physicians From 2021 to 2022, the number of ASCs under partnership by a national operator increased from 1,752 to 1,804, according to a report from VMG Health. e five largest ASC chains — USPl, AmSurg, SCA Health, HCA Healthcare and Surgery Partners — saw an increase of about 511 centers since 2011, according to VMG Health. As of 2022, 70% of ASCs were independent. e five largest ASC chains account for around 22% of the market. USPI has 30 de novo ASCs in its pipeline. It added six ASCs to its portfolio in the third quarter, most of which focused on orthopedic surgery. USPI's number of ASCs has grown 116% since 2011, outpacing AmSurg's number of ASCs in 2019. n