Outpatient Surgical Centers Industry Overview

Excerpt from Outpatient Surgical Centers Report

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. Major US companies include AmSurg, Symbion, and United Surgical Partners International, as well as the outpatient surgical operations of major hospital chains such as Tenet Health Care and Trinity Health.

Competitive Landscape

Demand is linked to the number of people receiving medical care. The profitability of individual centers depends on efficient operations and good marketing. Companies that operate multiple locations may enjoy some economies of scale in purchasing and marketing. Smaller companies can compete by providing superior service. The industry is fragmented: the 50 largest companies generate about 30 percent 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. Typical procedures include eye, orthopedic and hand, and plastic surgery; pain management (spinal injections); podiatry; ear-nose-and-throat surgery; and abortions, endoscopy, and laparoscopy. Outpatient surgical centers are a lower cost and more convenient alternative to hospitals. Hospitals generally have a higher cost structure, are often located downtown rather than in the suburbs, have limited availability of operating rooms, and can't always guarantee schedules because of possible preemption by emergency surgery.