ASCs are much more than a side bet. Here’s how developing a network of high-performing ASCs can fuel and accelerate development and growth goals for your health system overall.

GOAL: Strengthen physician alignment with independent medical groups

More than 76% of health system executives told VMG that they want to expand their provider networks in 2025. This goal is not easy, leaders acknowledge: 68% put “deploying effective physician alignment strategies” in their top three operational challenges.

Developing and operating a high-performing surgery center network is a powerful way to align physicians from independent medical groups with your health system’s network. Because well-run ASCs offer more efficient scheduling and more specialized surgical staff than most HOPDs can provide, many physicians prefer to operate in ASCs. The investment and leadership opportunities that ASCs offer bolster physician alignment.

GOAL: Recruit employed physicians and keep your top talent engaged

The nationwide physician shortage isn’t going away. While compensation influences whether a physician will leave a current position, factors such as work-life imbalance, lack of control, and inadequate support staff also drive decisions to stay or go.

Employed physicians are keenly interested in ASCs for the reasons independent physicians are. You can strengthen their engagement with your health system if you offer them opportunities for some of their workdays to be days leading and operating in an ASC.  

Bonus: Making ASC investment opportunities available to employed physicians allows your health system to create more comprehensive and attractive compensation plans.

GOAL: Expand your health system’s service areas

An asset light strategy improves the odds of success. Instead of trying to tackle all service lines in a geography at once, it’s smarter to concentrate your resources and score some early wins in a smaller, more manageable area first. An ASC may well be the entry point you’re looking for.

Approximately 67% of ASCs were independent in 2024, according to VMG. Yet these independent facilities performed only 37% of ASC procedures.

These two data points indicate that there are a lot of small, low-volume ASCs out there. If you see this pattern in your health system’s service areas, you can bet you have ripe opportunities to broaden access and grow ASC case volume for your health system.  

Developing or acquiring an ASC isn’t easy by any means, but it is simpler and quicker than the other service line expansion strategies you may be considering. Footprints are lighter, margins are higher, and you can accelerate development timelines as long as you choose the right partner.

GOAL: Diversify revenue streams. Grow operating margins  

Flat or shrinking margins in traditional, hospital-based service lines are driving health system leaders to prioritize ASC development. A few financial takeaways:

• Overall inpatient volumes will increase only 3% over the next 10 years.

• ASC volume will rise 21% to 44 million over the next 10 years.

• The ASC market will grow 50% over the next 6 years, from $50 billion to $75 billion.

• Attainable ASC margins range between 25-30%, far more than the approximately 5% average operating margin for health systems overall.

A strong surgery network strategy is the ‘assist’ your health system is looking for.  

GOAL: Overhaul and redeploy existing, sub-optimized assets

Many health systems undertake HOPD-to-ASC conversions to repurpose under-utilized hospital outpatient department space. This can be a good decision depending on current and forecasted HOPD volumes and bandwidth, location, and other realities align with your goals.

GOAL: Meet increasing patient demand for ambulatory surgical care options: Build your health system’s brand

In data from 6.5 million patient encounters in 2023, ASCs snagged an 85.3 “likelihood to recommend” (LTR) score, a five-year high, according to Press Ganey. In contrast, hospital services scored 69.2.  

Because so many patients view ASCs so positively, a strong surgery center network can be a brand-building powerhouse for your health system. It’s a point of entry for lasting patient relationships. By offering superior patient experiences — from easy access to exceptional outcomes — you establish a powerful competitive advantage, attracting new patients and building future pipelines for non-ASC services.That’s why so many health systems are doubling down on their ambulatory surgery center development efforts.

Learn How Compass Surgical Partners Can Support Your ASC Strategy‍

Compass creates strategic partnerships with independent physician groups and health systems to develop and manage high-performing ASC networks. From physician ownership pathways to operational excellence and sustainable growth, Compass delivers solutions that expand access to high-quality, lower-cost surgical care.  

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