Dr. Brubaker quoted in healthcare article focused on increased Private Equity investments in hospital-owned Ambulatory Surgery Centers (ASCs).
SAN DIEGO, CA – November 4, 2024
FMG Leading CEO Dr. Matt Brubaker was quoted in a Modern Healthcare article titled, “Private equity firms upping investment in hospital ASCs.”
The article, by Alex Kacik, describes the reasons private equity firms are increasingly investing in hospital-owned ambulatory surgery centers. The investment strategy allows companies to bankroll a growing sector while limiting regulatory scrutiny.
Kacik describes how the ASC sector is poised to expand as providers and patients more frequently choose the lower-cost setting over a hospital. He outlines how interest in the joint ventures is picking up amid an aging population, more state and federal oversight, and hospital outpatient care expansion plans.
The article continues by describing some of the fastest-growing specialties within the ambulatory surgery center sector, which include orthopedics, cardiology, gastroenterology, obstetrics and urology. Private equity is focused on higher-acuity services such as cardiology, said Matt Brubaker, chairman and CEO of consultancy FMG Leading.
“They are looking in specialties that have consistent, repeatable procedures for certain segments of the population. Most of the investors I know are looking at the margins rather than big change-of-control capital infusions because there are not as many of those deals to be done, it is still a fragmented sector and it is a proven wealth-creation play.”
— Matt Brubaker, CEO, FMG Leading
The article continues by describing how technology advancements, along with the promise of quicker procedures and quality improvements relative to hospital stays, are expected to fuel the growth of surgery centers. The sector is projected to grow about 7% a year to $75.2 billion in 2030, up from $46.6 billion in 2023, according to estimates from Fortune Business Insights.
To read the complete article in Modern Healthcare, click here (subscription may be required).
