Outpatient Surgical Centers

Outpatient Surgical Centers

Brief Excerpt from Industry Overview Chapter:

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 Health, and Surgery Partners, as well as the outpatient surgical operations of major hospital chains such as HCA Healthcare and Tenet Healthcare.

COMPETITIVE LANDSCAPE

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 40% of revenue.

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 don't require patients to stay overnight in a hospital. Major services include eye and adnexa, and musculoskeletal system and connective tissue which both account for about 20% of the industry's revenue. Other services include digestive systems, which account for about 15%. Factors influencing health status and not elsewhere classified account for both 10%. More than half of ASCs perform procedures in a single specialty; the remainder perform procedures in more than one specialty. Surgery centers...