Is the momentum shifting in ASC M&A deals?

eels like the peak days of mergers and acquisitions in the ASC industry have passed us by a little,” mentioned Whitt Holder, CEO of Amarillo Urology Associates. “Healthcare systems were once eager to buy practices and engage in joint ventures, but that momentum has slowed down. The surge in private equity activity during the COVID-19 pandemic has also tapered off.”

Mr. Holder’s observations are supported by recent data from VMG Health, which reported a decrease in private equity involvement in physician group transactions from 80% in 2018 to 59% in 2024. This decline in private equity activity marks a shift in the landscape of healthcare M&A deals.

Moreover, the emergence of new ASC companies and management services organizations reflects a growing focus on supporting physician independence rather than facilitating acquisitions. These organizations aim to offer platforms that empower physicians to maintain control over their practices and patient care.

Regarding declining offers from private equity groups, Mr. Holder expressed concerns about these organizations prioritizing profit over patient care and quality service. He emphasized the importance of ensuring that patients, physicians, and quality care remain central to healthcare practices, cautioning that failure to do so may lead to negative consequences in the long run.

ASCend Specialists, based in Gillette, Wyoming, is one such organization that prioritizes empowering rural and independent ASCs without seeking equity stakes or engaging in acquisition deals. By providing strategic growth planning, operational support, and back-office management, ASCend aims to keep ASCs strong and independent.

Norberto Orellana, CFO of ASCend, highlighted the organization’s goal of supporting ASCs while allowing them to maintain their independence. He emphasized that ASCend’s focus is on ensuring the strength and autonomy of ASCs rather than absorbing or acquiring them.

With these shifts in the ASC industry landscape, it is evident that there is a growing sentiment towards independence and autonomy among physicians and ASCs. As the pendulum swings away from traditional acquisition models towards supporting physician independence, organizations like ASCend are paving the way for a new era in the ASC industry.