Outpatient Surgical Centers Industry Profile

The US outpatient surgical center industry includes about 3,500 companies that operate about 5,000 centers and have combined annual revenue of about $18 billion. Major companies include Community Health Systems, Tenet Healthcare, Trinity Health, and Universal Health Services. The industry is fragmented: the 50 largest companies generate about 30 percent of revenue.

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.

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.

Most centers have from two to six operating rooms, and areas for reception, preparation, recovery, and administration. The staff includes nurses, technicians, and administrative personnel. Aside from anesthesiologists, doctors usually aren't part of the ...