What are ASCs seeking in mergers and acquisitions?

The ASC industry is witnessing an increase in consolidation, prompting ASC leaders to share their perspectives on what they hope to achieve through mergers and acquisitions. Larry Sobal, the CEO of the Heart and Vascular Institute of Wisconsin in Appleton, emphasizes the need for modernization of Stark and anti-kickback rules. These regulations often hinder beneficial arrangements that could lower costs, enhance access, and improve working conditions for physicians and staff.

Melissa Hermanson, the Administrator of the Ambulatory Care Center in Vineland, New Jersey, highlights the importance of maintaining autonomy and continuity of care for independent centers considering mergers or acquisitions. These centers seek to uphold a shared mission and vision while leveraging their strengths and addressing areas for improvement. Economic factors such as payor mix, reimbursements, and anesthesia costs often drive these transactions. Maintaining patient safety and care quality amidst changes is paramount to these centers.

Robert Nelson, the Executive Director of Island Surgicenter in Westbury, New York, stresses the need for private equity-acquisition groups to prioritize patient care, organizational culture, and business processes equally. Historically, acquiring companies tend to focus more on business operations, potentially impacting patient care and organizational culture. While mergers should benefit all stakeholders, they should never compromise patient care, safety, or staff morale.

ASC leaders’ perspectives shed light on their priorities in merger and acquisition deals in an increasingly consolidated industry. Sobal’s call for regulatory modernization points to the need for facilitating beneficial arrangements and streamlining operations. Hermanson’s emphasis on maintaining autonomy and care quality underscores the importance of upholding standards in the face of economic pressures. Nelson’s advocacy for balancing patient care, culture, and business processes highlights the delicate equilibrium required for successful mergers without compromising on essential aspects.

As the ASC landscape evolves with more consolidation, addressing these key concerns in mergers and acquisitions is critical. By focusing on regulatory updates, continuity of care, and maintaining a balanced approach to all aspects of the business, ASCs can navigate mergers successfully while safeguarding patient care and organizational culture. It is evident that for ASC leaders, ensuring the best outcomes for patients, staff, and stakeholders is the top priority in any merger or acquisition scenario.