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Why Do ASCs Fail? - August 2015 - Subscribe to Outpatient Surgery Magazine

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4 3 A U G U S T 2 0 1 5 | O U T P A T I E N TS U R G E R Y. N E T Ambulatory surgery centers appear to be opening and closing at about the same rate, with roughly 100 being built each year and roughly 100 clos- ing, says Jon Vick, president of consult- ing firm ASCs, Inc. "The market is saturated, growth has leveled off, and that's not expected to change," says Mr. Vick. As of 2014, there were 5,377 Medicare-certified ASCs. That's a huge jump from the 326 that existed in 1986, but it's only a tiny increase from the 5,316 that existed in 2010. Those closing down, says Mr. Vick, include some that are being converted to GI endoscopy centers or cardiac catheterization labs, but many are also simply falling by the wayside, unable to recruit new physicians or find buyers. Then there's attrition on another front. An increasing number of hospitals are converting sur- gery centers into hospital outpatient departments. Of the 205 surgery centers that closed between 2009 and 2011, hospitals flipped more than one-third of them to HOPDs, says the Ambulatory Surgery Center Association (ASCA). Between 2009 and 2014, ASCA estimates that there have been more than 110 ASC-to-HOPD conversions. Meanwhile, hospitals have become a major player, and now have ownership stakes in an esti- mated 24% of ASCs, up from about 2% in 2000. According to this current ownership breakdown, based on estimates provided by ASCs, Inc., physician-owned ASCs still dominate the market- place: • Physicians only: 62% • Corporation/hospital/physician(s): 6% • Hospital/physician(s): 16% • Corporation only: 6% • Corporation/physician(s): 8% • Hospital only: 2% — Jim Burger PLUSES AND MINUSES ASCs Now Rising andFalling at the Same Rate

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