Outpatient Surgical Centers
Companies in this industry provide surgical and emergency care services for ambulatory patients in standalone facilities that are outfitted with operating and recovery rooms; they do not offer overnight or long-term hospital care or care for minor ailments. Major US companies include Envision Healthcare, SCA (formerly Surgical Care Affiliates), and Surgery Partners, as well as the outpatient surgical operations of major hospital chains such as Tenet Healthcare and HCA.
The global ambulatory surgery center (ASC) market generated about $67 billion in revenue in 2017, according to Global Market Insights. The market is expected to grow at a compound annual rate of about 5% through 2024. Since many countries have national health care systems, outpatient surgery is usually offered by the country's hospital system. However, in countries such as Australia, France, Germany, India, Japan, Spain, and the UK, some companies operate health care facilities that accept private insurance and self-pay patients. With demand for outpatient surgery rising and competition increasing among US outpatient surgery centers, companies could consider the overseas market for expansion opportunities.
The US outpatient surgical center industry includes about 6,800 centers with a combined annual revenue of about $28 billion.
Demand is linked to the number of people receiving medical care and the cost of hospital-based care. The profitability of individual centers depends on efficient operations and effective marketing. Companies that operate multiple locations may enjoy some economies of scale in purchasing, administration, and marketing. Smaller companies can compete by providing superior or niche services. The US industry is fragmented: the 50 largest companies generate about 35% of revenue.
The primary competition for ASCs comes from hospital surgery departments, which have traditionally performed the majority of inpatient and outpatient procedures.
Products, Operations & Technology
Outpatient surgical centers, otherwise known as ambulatory surgical centers (ASCs), are used by doctors to perform a variety of surgical procedures that
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Quarterly Industry Update
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Call Preparation Questions
Glossary of Acronyms