Catholic healthcare provider Ascension plans to quadruple its footprint for outpatient surgery centers as the organization looks to capitalize on the segment’s growth as more surgical procedures move out of hospital settings.
Ascension agreed to acquire AmSurg for an undisclosed amount, according to a statement from the St. Louis-based nonprofit organization. The companies did not disclose an estimated closing date for the transaction.
The purchase price is reportedly around $3.9 billion, according to Bloomberg. Ascension and AmSurg did not respond to email requests for comment.
Ascension joins other large healthcare providers like Tenet Healthcare in expanding its portfolio of outpatient surgery centers, also known as ambulatory surgery centers, according to trade publication Becker’s.
Lower-cost and routine procedures such as LASIK surgery are increasingly shifting away from high-cost hospital settings and into outpatient centers that typically don’t require overnight stays.
Growth in outpatient surgery has also fueled increased demand for medical office space, according to Melina Duggal, senior director of market analytics for CoStar.
More convenience
In addition to lower costs, patients often prefer outpatient surgery centers because procedures can be more convenient than hospitals.
Ascension currently operates 58 outpatient surgery centers and the acquisition of AmSurg's properties would boost its portfolio 430% to about 310 locations.
AmSurg primarily leases the spaces where it operates outpatient surgery centers, according to CoStar data.
Most of its properties are located in large urban markets like New York, Los Angeles, Boston, Chicago, Miami, Boston, Philadelphia, Houston, Dallas-Fort Worth and Seattle.
AmSurg has more than 250 locations in 34 states, according to the statement.
Doctors in AmSurg’s facilities perform surgical procedures in multiple specialties, including endoscopy, gastroenterology, orthopedics and LASIK surgery.
For the record
Jefferies was financial adviser to Ascension, and Sheppard Mullin and Hall, Render, Killian, Heath & Lyman were legal counsel. Goldman Sachs and Ducera Partners were financial advisers to AmSurg, and Bass, Berry & Sims and Milbank were counsel.