The Catholic nonprofit is reportedly close to adding AmSurg’s network of more than 250 surgery centers.
Ascension’s portfolio alignment could soon include the acquisition of a major ambulatory surgery center company.
The St. Louis-based health system is in talks to purchase AmSurg for $3.9 billion, according to Bloomberg, with sources indicating that a deal could be reached within weeks.
AmSurg, which operates more than 250 outpatient surgery centers across 34 states, was previously part of Envision Healthcare before splitting from the company as a result of its 2023 bankruptcy. Now, it is owned by Pacific Investment Management Co, King Street Capital Management, and Partners Group, Bloomberg noted.
For Ascension, an acquisition of AmSurg would significantly boost its outpatient offerings and follow the trend of health systems investing in the cost-effective care setting.
The move would also align with Ascension's ongoing efforts to shift its portfolio, with the organization having recently transferred or sold several hospitals to other health systems.
Ascension reached a definitive agreement with Beacon Health System in April to divest its Michigan southwest region, which includes four hospitals, 35 outpatient clinics, and an ambulatory surgery center.
Prior to that, Ascension completed a sale of eight hospitals to Prime Healthcare, transferred eight hospitals to Henry Ford Health in a joint venture, and sold three Michigan hospitals and an ambulatory surgery center to MyMichigan health.
The divestitures were reflected in Ascension’s most recent earnings report, showing a $466 operating loss and a dip in operating revenue to $6 billion, compared to $7.4 billion over the same period last year.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Ascension is nearing a $3.9B deal to acquire AmSurg, expanding its outpatient footprint as it partly pivots from inpatient operations.
AmSurg’s 250-plus surgery centers across 34 states would enhance Ascension’s ability to provide lower-cost surgical options.
The potential acquisition follows several divestitures for Ascension and reflects the health system’s effort to stabilize finances and reshape its care delivery model.