Ambulatory Surgery Centers Make Significant Net Patient Revenue Gains in Pennsylvania

As the health care industry continues to shift its focus to emphasize the delivery and innovation of patient care outside of the hospital, ambulatory surgery centers (ASCs) have taken center stage as lower-cost care sites. In particular, ASCs have played a large role in the delivery of quality patient care, offering patients a specialized, highly efficient, convenient and cost-effective alternative to the traditional hospital settings. Due to clinical innovation, competition, payer pressures, physician alignment dynamics and consumer preferences, there has been a massive outmigration of surgical volume to ASCs resulting in a substantial growth in volume of ASC procedures and, accordingly, revenue.

This shift in care site has become evident within Pennsylvania’s ASCs specifically. On Sept. 26, 2024, the Pennsylvania Health Care Cost Containment Council released its Financial Analysis 2023, Volume Two that provides insights into the financial health of Pennsylvania’s ASCs. The report demonstrates that ASCs within Pennsylvania are financially healthy and thriving. Specifically, for Pennsylvania ASCs in FY2023:

• The net patient revenue was $1.90 billion, a 14.1% increase from $1.67 billion reported in FY2022
• The average outpatient revenue per visit was $1,372
• The total number of reported outpatient visits was 1.39 million, an 18.7% increase from the 1.17 million reported in FY2022
• The total number of outpatient surgical procedures performed was 4.6 million, an increase of 3.7% from the 4.5 million performed in FY2022
• The statewide total margin realized was 23.63%, an increase from the 20.49% realized in FY2022
• The statewide operating margin realized was 24.31%, an increase from the 20.82% realized in FY2022

In light of these numbers, and the 21% projected growth in ASC volume and revenue between 2024 and 2034, it would be prudent for health systems to consider their ASC footprint more proactively, especially for those surgical specialties that are core to the health system’s business. Potential ASC investments should be evaluated for opportunity as it relates to the health system’s specialty care growth, not viewed as a threat to a health system’s hospital-based business. By proactively participating in the health care industry’s shift in focus to patient care outside of the hospital, health systems can facilitate specialty care growth by utilizing ASCs to improve patient access and care.