Issue link: https://beckershealthcare.uberflip.com/i/1518055
26 TRANSACTIONS Where ASC transactions are heating up By Patsy Newitt A lthough 68% of the ASC market remains independent, the industry saw continued consolidation in 2023, according to a recent report from VMG Health. e market saw individual transactions by large ASC platform players, as well as lower-middle-market level. Here are eight major deals to know in 2023, according to the report. 1. In February, United Musculoskeletal Partners partnered with two orthopedic practices based in Dallas-Fort Worth —- All- Star Orthopaedics, with four clinic locations, and OrthoTexas Physicians and Surgeons, with five clinics and one ASC. 2. In May, Hartford HealthCare acquired two ASCs in Connecticut. Hartford HealthCare acquired 70.6% of Trumbull, Conn.-based Surgery Center of Fairfield County and 51% of Torrington, Conn.-based Litchfield Hills Surgery Center. 3. In June, Covenant Physician Partners expanded its Southern California footprint through a new merger with Los Angeles- based Wilshire Center for Ambulatory Surgery. 4. In September, Unifeye Vision Partners acquired Insight Vision Group and its 10 clinics and two multispecialty ASCs. 5. In September, Surgery Partners acquired San Ramon, Calif.- based NorCal Orthopedic Surgery Center and its nine operating entities and 25 physician partners. 6. In October, TriasMD, the parent company of DISC Surgery Centers, acquired Pinnacle Surgery Center in Walnut Creek, Calif. 7. In October, newly founded, private equity-backed SurgNet Health Partners acquired two ASCs in Michigan and Ohio — Dearborn, Mich.-based Executive Ambulatory Surgery Center and Warren, Ohio-based Lippy Surgery Center. Additionally, a $50 million equity check was syndicated to launch the platform. 8. In November, Regent Surgical Health acquired majority ownership in Beaverton-based Oregon Surgical Institute. n Tenet to sell 2 hospitals in $550M agreement with Adventist Health By Riz Hatton T enet Healthcare entered a definitive agreement with Roseville, Calif.-based Adventist Health for the sale of two Tenet hospitals and related operations in California's San Luis Obispo County. The transaction includes Sierra Vista Regional Medical Center in San Luis Obispo, Calif., and Twin Cities Community Hospital in Templeton, Calif., in addition to affiliated physician practices and other related operations, according to a Feb. 29 news release from Tenet. The agreement is for about $550 million and is expected to be completed in the spring of 2024. Tenet's Conifer Health Solutions will also enter a strategic partnership with Adventist Health to provide hospital and physician revenue cycle services, according to the release. n The rise and fall of ASC inflation adjustments By Cameron Cortigiano The net inflation adjustment for ASCs is 3.1% in 2024, a full percentage point higher than the average since 2015. In the past 10 years, the net inflation adjustment has only been above 3% twice: in 2023 and 2024, largely caused by labor and supply cost pressures, according to a Feb. 13 news release from VMG Health. The lowest the net inflation adjustment has been in the past 10 years was in 2016, when it was 0.3%. The Inflation adjustment peaked in 2023, reaching nearly 4%. Here are the ASC annual net inflation adjustments each year since 2015: 2015: 1.4% 2016: 0.3% 2017: 1.9% 2018: 1.2% 2019: 2.1% 2020: 2.6% 2021: 2.4% 2022: 2% 2023: 3.8% 2024: 3.1% n