The outpatient and ambulatory surgical center industry in the US includes about 1,500 companies that operate some 3,500 centers and have combined annual revenue of about $9 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. Chains that operate several centers have few advantages over single centers because there are few economies of scale in operations. Average annual revenue per employee is about $150,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
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 ...
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