Becker's ASC Review

ASC_March_April_2024 Issue

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27 TRANSACTIONS Michigan surgery, endoscopy center building sells for $9.8M By Claire Wallace A Midland, Mich.-based building housing the Great Lakes Bay Surgery & Endoscopy Center has sold for $9.8 million, according to a Feb. 16 report from REBusiness Online. The 23,420-square-foot building sold to an undisclosed buyer in an all-cash deal. It is one of several medical office buildings that has already changed hands in 2024. n Novant Health takes majority ownership of spine, GI ASCs By Carly Behm W inston-Salem, N.C.-based Novant Health took majority ownership of two ASCs in Mount Pleasant, S.C., ABC 4 reported March 4. The health system acquired stake in Southeastern Spine Institute's Ambulatory Surgery Center and Mount Pleasant Outpatient Surgery Center, which specializes in gastroenterology. Southeastern Spine Institute has 11 physicians, according to its website. Mount Pleasant Outpatient Surgery Center has nine physicians, according to its website. n The biggest opportunity in ASC acquisitions By Patsy Newitt T he fragmentation of the ASC market is primed for acquisitions at the individual facility level, according to a January report from VMG Health. Here are three more notes: 1. 1. As of 2023, roughly 68% of ASC facilities are independent. 2. 2. ASC transaction activity in 2023 was made up of large-level ASC platform players and lower-middle-market level. 3. 3. e ASC market has seen continued private equity activity, most oen tied to physician practice portfolios, which allows investors to capture additional revenue streams. n US ASC market projected to pass $53B by 2029 By Cameron Cortigiano e ASC market in the U.S. was valued at $36.54 billion and is projected to reach $53.67 billion by 2029. In the next five years, the market is forecast to expand by more $17 billion with a compound annual growth rate of 6.6%, according to a Feb. 21 report by Research and Markets. e growth is due in part to the increasing number of ASC across the country and the shi of many surgeries from hospitals to ASCs. e changes in ASC ownership structure are also a driving force of the increased valuation. ere is more competition amongst healthcare providers, leading to hospitals and corporations partnering with physicians, according to the report. n

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