ASC Ortho Procedure Volume – 12% Growth Next Five Years

Have you noticed how orthopedic, and spine ambulatory surgery centers (ASC) seem to be popping up everywhere? Maybe as an adjunct to an existing hospital system or as a standalone?

How fast is that growth? According to a new report “Impact of Change Forecast” from Sg2 (a Vizient Inc. company) procedure volumes at Ambulatory Surgery Centers (ASC) will likely grow 12% growth in the next five years and 22% growth in the next 10 years.

In ASC Focus, Sg2 Senior Consulting Director of Intelligence Tony Guth wrote, “The services expected to see the greatest movement toward ASCs will be those that are clinically appropriate, reimbursed by payers and done by physicians who are incentivized to work in ASCs.”

Guth added, in part, “[W]e expect a continued increase in cases shifting from hospitals for services like orthopedics.”

Guth also remarked that ASC growth can differ across markets and is “driven by a few key factors” such as “State and local regulations (CON laws), how physicians are aligned with a market, pressure from payers to move procedures to cheaper care sites, the size and growth of the market, and the level of competition.”

According to the report, outpatient surgical volume will grow 18% by 2033, and the top procedures fueling that growth are: total joint replacement, lumbar/thoracic spinal fusion, revision knee replacement, prostatectomy, cervical spinal fusion, cholecystectomy, and bariatric surgery.

Per the report, outpatient service line growth in the U.S. market from 2023 to 2033 for orthopedics and spine is 10% according to the Sg2 OP forecast and 11% according to the population-based forecast.

A 2021 report in Vizient’s Tech Watch focused on spine program evolution predicted that “due to dynamic market conditions, spinal procedures are expected to follow a similar path [to orthopedic procedures] over the next 10 years, slowly recovering [from COVID-19 disruptions] and transitioning to outpatient facilities.” It predicted that “high obesity rates and other lifestyle factors will drive an increase in total demand for spine services.”

This trend has become increasingly apparent through recent ASC acquisitions and expansions. One of the latest acquisitions in the ASC spine/orthopedic space is TriasMD’s recent acquisition of Thousand Oaks Surgery Center in Thousand Oaks, California.

TriasMD, based in Newport Beach, California, is a musculoskeletal healthcare company. It is the parent company of DISC Sports & Spine Center. This acquisition is the company’s third and, similar to the renaming of the other two ASCs, the newly acquired ASC will be renamed DISC Surgery Center at Thousand Oaks.

Thousand Oaks Surgery Center, an AAAHC-accredited, Medicare-certified facility, is led by its owner Alexander P. Hersel, M.D., PMIR. Thousand Oaks Surgery Center offers ambulatory surgical care for a variety of specialties, including, per the press release, “spine, orthopedics, podiatry, pain management, otolaryngology, and plastic surgery.”

Under the partnership, TriasMD will be the majority partner. TriasMD and Dr. Hersel will work together to focus on enhancing the ASC’s services and expanding patient access. TriasMD also plans to hire additional spine and orthopedic surgeons and invest in instruments and equipment.