Ascension announced a deal Tuesday morning to acquire ambulatory surgery management services company AmSurg, marking a leap forward in the Catholic giant’s push to expand outpatient capacity.
The deal would bring more than 250 outpatient ambulatory surgery centers (ASCs) in 34 states that AmSurg manages into Ascension’s network of hospitals and other care sites.
“This acquisition is deeply aligned with Ascension’s Mission to provide compassionate, personalized care to all, especially those most in need,” Joe Impicciche, CEO of Ascension, said in the announcement. “It reflects our steadfast commitment to expanding access to care in a way that is more affordable, more local, and more centered around the dignity and well-being of those we serve.”
Financial terms of the deal and its anticipated timeline were not disclosed, though Bloomberg reports citing unnamed insiders peg the total at roughly $3.9 billion. A similar number was floated in reports that circulated a few weeks back on the negotiations.
AmSurg’s current ownership includes investment firms Pacific Investment Management Co., King Street Capital Management and Partners Group, according to Bloomberg’s sources.
AmSurg launched in 1992 and merged with physician staffing firm Envision Healthcare in 2016. That combined entity’s 2023 bankruptcy involved a restructuring that reestablished AmSurg as a separate business.
That business comprises “consensus management” partnerships AmSurg strikes with physicians, as well as joint ventures with hospitals and health systems. Ascension, in the announcement, said it intends to continue that “proven model of physician-led joint ventures and governance. This ensures that clinical leadership remains central to each center’s success and that physicians are empowered to shape the delivery of care in their communities.”
“This acquisition represents an exciting next chapter for AmSurg,” CEO Jeff Snodgrass said in the announcement.
Ascension went on to say it’s targeting a seamless integration for patients and providers while “upholding and enhancing the quality, safety and operational excellence both organizations are known for.” The system will also continue supporting its other outpatient care partners, it said.
The nonprofit, which owns or has interests in 121 hospitals and employs nearly 100,000 people, has been working its way through a strategic realignment in which it has sold off numerous hospitals while fleshing out its core care networks.
Of interest to the AmSurg deal, the health system had already notched an 18.1% year-over-year increase in outpatient surgery visits across the nine months of its ongoing fiscal year. In its most recent quarterly earnings, management pointed to that growth as justification for additional investments ... "being made in our ambulatory surgery centers, imaging and outpatient physical therapy sites that enhance Ascension’s footprint of service offerings and provide greater access and convenience to consumers.”
Tuesday’s announcement was framed as a continuation of both the strategic realignment—a “thoughtful approach to rightsizing its operational footprint and reallocating resources to better align with how and where care is being delivered across the country”—and a recognition of the healthcare system’s transition toward out-of-hospital care.
“The healthcare landscape is changing rapidly, and Ascension is leading the way in adapting to that change,” Eduardo Conrado, president of Ascension, said. “The shift from inpatient to outpatient care is accelerating nationwide. By investing in AmSurg’s strong ASC network, we are proactively responding to this transformation. We are investing in a platform to support independent physician groups and health care systems alike, and, most crucially, we are ensuring that patients have access to the care they need in convenient, trusted and community-based environments.”
Ascension reported $28.6 billion of total operating revenue during its 2024 fiscal year (ended June 30, 2024), as well as a $1.8 billion operating loss and $1.1 billion net loss. As of the close of its most recent quarter, the system has lost $466 million across nine months from operations but added $195 million of net income.