The Rise of ASCs and the Role of Real Estate
As healthcare continues to evolve, Ambulatory Surgery Centers (ASCs) have emerged as a critical component of modern care delivery. ASCs offer high-quality, cost-effective surgical care in outpatient settings, reducing the burden on hospitals and improving patient satisfaction. However, as the ASC market expands, real estate decisions play a crucial role in determining the success of these facilities.
For healthcare executives, the ability to strategically plan, develop, and invest in ASC real estate is more important than ever. Health systems must balance patient accessibility, financial sustainability, and operational efficiency while navigating an increasingly competitive landscape.
This blog explores the latest ASC real estate trends, key factors influencing site selection and facility design, and how Boldt Real Estate supports health systems in optimizing ASC expansion strategies.
Market Growth: Why Health Systems Are Investing in ASCs
Healthcare is rapidly moving away from traditional hospital-based surgeries toward cost-efficient outpatient procedures. The ASC model offers significant benefits, including lower costs, increased efficiency, and higher patient satisfaction. ASCs operate at 40-60% lower costs than hospitals, benefiting both patients and payers. They also enable quicker turnaround times and shorter patient stays, leading to higher throughput. Additionally, outpatient care reduces hospital-acquired infections (HAIs) and improves the overall patient experience.
According to Grand View Research, the U.S. ASC market was valued at $40.41 billion in 2023 and is expected to grow at a 6.02% CAGR through 2030. This growth is driven by Medicare and commercial insurance reimbursement expansion for outpatient procedures, rising demand for high-growth specialties like orthopedics, cardiology, and gastroenterology, and health system strategies to offset declining hospital margins by shifting procedures to lower-cost settings.
Developers like Boldt helps health systems identify prime ASC locations, structure cost-effective development models, and ensure long-term real estate sustainability. One notable example of Boldt’s expertise is its partnership with CommonSpirit Health, where the team spearheaded the development of several state-of-the-art outpatient medical facilities. These projects not only expanded patient access but also streamlined care delivery, reinforcing the value of strategic outpatient investments in enhancing healthcare efficiency and financial viability. Read the full case study here.
Strategic Site Selection: The New ASC Location Model
Historically, ASCs were developed near hospital campuses, but today’s healthcare real estate strategy prioritizes patient convenience and cost efficiency. Modern site selection for ASCs focuses on accessibility and affordability, moving beyond hospital-centered locations to areas that cater to patients’ needs more effectively.
Emerging site selection trends for ASCs include retail conversions, where vacant retail spaces are repurposed into surgical centers, allowing for quicker market entry and lower development costs. Additionally, suburban expansion has become a priority, with ASCs being built in high-growth suburban areas to improve accessibility and lower operational expenses. Another growing trend is integrating ASCs within multi-specialty medical office buildings (MOBs), which enhances referral networks and streamlines patient care.
By carefully selecting the best locations for ASCs, developers like Boldt ensure that each facility is positioned for long-term success, meeting both community needs and business goals.
Real Estate Investment Trends: Maximizing ROI for Health Systems
Private equity firms have been aggressively acquiring and developing ASCs, often outpacing health systems in expansion. To remain competitive, health systems must adopt strategic real estate investment models that align with long-term financial sustainability.
Health system executives face critical investment decisions, including whether to lease or own ASC real estate. Each option comes with financial trade-offs, affecting capital expenditure and long-term returns. Market demand for ASCs is driving premium valuations, with cap rates ranging from 5.5% to 7%, making them attractive assets for long-term investors. Additionally, joint ventures and partnerships with experienced healthcare real estate firms help health systems reduce risks while optimizing capital deployment.
ASC Facility Design: Future-Proofing Investments
Modern ASCs require high-tech, flexible facilities that can adapt to changing surgical technologies and patient needs. Facility design plays a crucial role in optimizing operational efficiency and ensuring long-term success.
Key facility design trends include modular spaces that allow for adaptable layouts and multi-specialty use. AI and robotics integration in surgical suites is another growing trend, requiring innovative real estate considerations. Many ASCs are also prioritizing sustainable construction by implementing LEED-certified, energy-efficient designs that lower operational costs. Patient-centered environments are gaining attention as well, with optimized recovery spaces improving patient experience and satisfaction.
Why Healthcare Executives Should Partner with Boldt
Boldt provides data-driven site selection, identifying high-growth markets for ASCs. Our low-cost and convenient financing and development services ensure future-proofed facilities for long-term efficiency. To explore how Boldt can help your health system develop market-leading ASCs, contact us today.
