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The U.S. ambulatory surgical centers market size was USD 34.73 billion in 2020. The market is projected to grow from USD 36.96 billion in 2021 to USD 58.85 billion by 2028 at a CAGR of 6.9% in 2021-2028. The COVID-19 pandemic negatively impacted the market due to the postponement and cancellation of most elective surgical procedures. Based on our analysis, the U.S. market exhibited a substandard growth of -5.7% in 2020 compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Ambulatory surgical centers (ASCs) are modern outpatient healthcare facilities that provide same-day surgical services, including diagnostic and preventive services. These settings offer a convenient environment and cost-effective surgical services compared to most hospitals in the U.S. The typical specialties served in these settings include pain management, orthopedics, gastroenterology, ophthalmology, urology, and dermatology.
The market growth is mainly attributed to the increasing need for new solutions to cut down healthcare costs in the U.S. Moreover, the growing incidence of chronic diseases requiring surgeries is driving the market growth. In addition, rising investments and initiatives by governments and public health organizations, shifting preference of patients from hospitals to ambulatory surgical centers, and a favorable reimbursement scenario are propelling the market growth. The increasing number of ambulatory surgical centers over the last decade drives the market growth.
Decline in Surgical Procedures amid COVID-19 to Hamper Market Growth
The COVID-19 pandemic negatively impacted the market in 2020. Issues such as lack of workforce & staff, procedural prioritization, risk of transmission of COVID-19, and the limited number of surgical procedures across these healthcare settings posed as a roadblock for the market growth in 2020. These healthcare facilities across the U.S. witnessed a decline in the number of visits, thereby reducing the overall revenues generated in 2020. Moreover, operational restrictions such as mandates to stop or postpone elective surgeries during the COVID-19 pandemic negatively impacted the market.
Additionally, factors including the risk of rapid spread of COVID-19 through public gatherings and the need for conserving personal protective equipment and mechanical ventilators led to the postponement of elective surgical procedures in 2020. However, patients from hospitals are expected to migrate rapidly to ambulatory settings post-COVID-19.
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Strategic Initiatives to Boost the Market Growth
The companies operating in the U.S. ambulatory surgical centers market are constantly focusing on strategies such as mergers, acquisitions, and expansions to increase their revenue. For instance:
Similarly, many market players are involved in developing new and innovative solutions in these healthcare settings are expected to boost the market growth.
Shifting Preference Toward ASCs to Augment Market Growth
The shift from surgical procedures in hospitals to ambulatory settings is driving the market growth. The number of surgical procedures in ambulatory surgical centers has seen a significant increase over the past decade. A large number of patients prefer these healthcare facilities for various surgeries, owing to factors such as shorter stays, innovative technologies, cost-effective surgical procedures, and fewer risks of infections.
Increasing government investments towards developing new ambulatory settings are expected to drive the market growth during the forecast period.
Positive Reimbursement Scenario to Boost Market Growth
The reimbursement is one of the critical drivers for market growth. Favorable reimbursement policies are increasing the focus of the Centers for Medicare & Medicaid Services (CMS) toward the extension of the list of surgical procedures that are allowed ASCs. Rising initiatives by commercial payers to encourage physicians to perform various surgical procedures in these facilities are expected to fuel the market in the upcoming years. Furthermore, CMS constantly focuses on reviewing the complications associated with the surgeries performed, thereby improving the patient’s safety who undergoes surgical procedures.
Such intense focus of payers towards the safety of surgical procedures in these healthcare facilities will attract a larger patient pool across the U.S. Thus, the favorable reimbursement scenario for procedures performed in ambulatory settings coupled with the increased focus on the safety of procedures is expected to propel the market growth in the future.
Disadvantages Associated With ASCs to Limit the Market Growth
A significant percentage of the patient population in the U.S. has preferred outpatient surgery centers for surgical procedures over the past decade. However, several disadvantages of ASCs are expected to limit the market growth during the forecast timeframe. These disadvantages include lack of overnight facilities, complications & emergencies during certain surgical procedures, and no plans for contingencies. Difficulties or complications during some surgical procedures may even require the transfer of patients from ambulatory surgical centers to nearby hospitals. Thus, some of the patients prefer hospitals for surgical procedures.
The common complications during surgical procedures include pain & nausea, impaired healing, and infections. These disadvantages could hamper the market growth during the forecast period.
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Strong Presence of Single-specialty Ambulatory Surgical Centers to Drive the Single-specialty Segment During 2021-2028
Based on type of center, the market is segmented into single-specialty and multi-specialty.
The single-specialty segment dominated the U.S. market in 2020 and is anticipated to continue to show similar trends during the forecast period. The dominance of the single-specialty settings is attributed to the growing incidence & prevalence of ophthalmic disorders and the strong presence of single-specialty ambulatory surgical centers in the U.S.
The multi-specialty segment is projected to expand at a substantial CAGR during the forecast period. The surging number of surgical procedures related to ophthalmology, gastroenterology, and pain management are expected to boost the revenue of multi-specialty settings in the coming years.
Several Advantages of Physician-owned Centers to Boost the Physician-owned Segment During the Forecast Period
Based on ownership, the market is segmented into physician-owned, hospital-owned, and corporate-owned.
The physician-owned segment accounted for the largest market share in 2020 and is expected to expand at a substantial CAGR during the forecast period. Physician-owned ambulatory settings are the most common as doctors own 100% equity in these centers. The large share of this segment is also attributed to factors such as physicians’ convenience in scheduling surgical procedures, leading to increased preference for this type of ownership by in the U.S.
The hospital-owned segment is held the second-highest market share in 2020 and is projected to expand at a significant CAGR during the forecast period. Increasing employment of physician-owned practices by hospital-owned practices is expected to increase the revenue of hospital-owned centers in the future.
The corporate-owned segment is anticipated to expand at the highest CAGR during the 2021-2028. The high growth rate of this segment is attributed to the increasing focus of management companies and physicians toward the formation of a common joint venture. This ownership model is expected to boost the revenue of corporate-owned centers in the coming years as partnerships between corporate firms and physicians continue to emerge.
Increasing Number of Surgeries across the U.S. to Contribute to the Dominance of Surgical Services Segment during the Forecast Period
Based on application, the market is segmented into surgical services and diagnostic services.
The surgical services segment dominated the market in 2020 and is expected to expand at the highest CAGR during the forecast timeframe. This segment's large share and high growth rate are attributed to the increasing number of surgical procedures in ambulatory settings. These procedures majorly include surgeries related to ophthalmology, gastroenterology, pain management, and orthopedics.
The diagnostics services segment is estimated to expand at a moderate CAGR during the forecast period. The growth of this segment is attributed to increasing patient population availing various diagnostic services which primarily include diagnostic colonoscopy and colorectal screening.
Companies with Largest Chains to Hold Key Market Share
This market is highly fragmented due to the presence of many companies offering ambulatory surgery services in the U.S. However, several key players, such as T.H. Medical, Surgery Partners, AMSURG (Kohlberg Kravis Roberts & Co. L.P.), SurgCenter, and Surgical Care Affiliates, held one-fourth of the market share in 2020.
AMSURG (Kohlberg Kravis Roberts & Co. L.P.) dominated the market in 2020. Its dominance is due to the large number of ambulatory surgery centers owned and operated by the company. For instance, according to the recently published data by Becker’s ASC Review, in 2021, AmSurg (Kohlberg Kravis Roberts & Co. L.P.) owns and operates more than 250 ambulatory surgical centers.
Other companies, such as Constitution Surgery Alliance, ASD Management, and Medical Facilities Corporation, held substantial market shares due to their strong presence in the U.S. and the number of centers owned by them. Furthermore, strategic initiatives, such as mergers and acquisitions, are expected to increase their market share in the coming years.
An Infographic Representation of U.S. Ambulatory Surgical Centers Market
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The U.S. ambulatory surgical centers market research report provides a detailed industry analysis. It focuses on key aspects, such as leading companies, type of centers, ownerships, and application. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report includes the number of ambulatory surgery centers by key states, an overview of top surgical procedures, comparative analysis of average price & cost of selective procedures, company market share analysis in competitive landscape, and COVID-19 impact analysis on the market.
Value (USD Billion)
By Type of Center
Fortune Business Insights says that the U.S. market stood at USD 34.73 billion in 2020 and is projected to reach USD 58.85 billion by 2028.
The market is expected to exhibit steady growth at a CAGR of 6.9% during the forecast period (2021-2028).
Considering the type of center, the single-specialty segment is set to lead the market.
Factors such as the increasing shift from hospitals to ASCs for surgical procedures, presence of reimbursement policies, increasing investments, and rising prevalence of various diseases related to ophthalmology, gastroenterology, pain management, and orthopedics are driving the market.
T.H. Medical, Surgery Partners, AMSURG (Kohlberg Kravis Roberts & Co. L.P.), SurgCenter, and Surgical Care Affiliates are some of the top players in the market.
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