Traditional large hospitals, once the cornerstone of medical care, are increasingly being supplemented and sometimes even replaced by ambulatory surgery centers (ASCs) and outpatient laboratories. The healthcare industry is witnessing a broader shift towards outpatient care for non-emergency procedures and diagnostics. Patients prefer the convenience of outpatient settings, where they can receive prompt treatment without needing overnight stays. This shift aligns with efforts to reduce hospital readmissions and improve patient satisfaction by offering more personalized, accessible, and affordable care options.
An ambulatory surgery center (ASC) is a specialized healthcare facility that provides surgical procedures on an outpatient basis; patients do not require an overnight stay after their surgery. ASCs are designed to perform a wide range of surgical procedures that do not necessitate prolonged hospitalization, like minor surgeries, diagnostic procedures, and preventive treatments. Common procedures at an ASC include colonoscopies and endoscopies, orthopedic surgeries, plastic surgery procedures, cataract laser surgery, and many more.
Outpatient labs (labs outside of the hospital setting) have also risen in popularity; Phillips predicts that the office-based lab industry will reach $14.5 billion by 2027. These labs offer various diagnostic tests and screenings to assist in diagnosing and monitoring medical conditions. This includes blood tests, urine tests, imaging studies (such as X-rays and ultrasounds), electrocardiograms (ECGs), and other specialized tests. Outpatient labs play a crucial role in preventive healthcare by offering screenings and tests for early detection of diseases and health conditions. This may include cholesterol screenings, cancer screenings (such as mammograms), diabetes monitoring, and vaccinations. They also provide an opportunity for patients with chronic conditions to receive regular monitoring of their health parameters. Some outpatient labs even specialize in specific types of testing for fertility, and genetic conditions. Others specialize in procedures like cardiac or pulmonary function testing.
COVID-19 Accelerated Change
The COVID-19 pandemic accelerated the adoption of outpatient care models. Hospitals faced challenges like capacity management, infection control, and resource allocation, leading to a renewed interest in decentralized healthcare delivery. ASCs and outpatient labs, with their smaller footprints and ability to adapt quickly to changing circumstances, became instrumental in maintaining essential healthcare services while reducing the risk of viral transmission.
During COVID, patients also became far more comfortable with telehealth options and began to seek quicker access and personalization in their overall medical care. ASCs and outpatient labs are designed to focus on patient convenience, comfort, and overall experience. From streamlined scheduling processes to shorter wait times and personalized attention, these facilities prioritize delivering a positive patient journey. Their patient-centric approach not only improves satisfaction levels but also encourages better adherence to treatment plans and follow-up care.
Advancements in Medical Technology
One of the key drivers behind the rise of ASCs and outpatient labs is the rapid advancement of medical technology. Procedures that once required a hospital stay can now be performed on an outpatient basis due to minimally invasive techniques, improved anesthesia options, and better post-operative care protocols. For instance, surgeries like cataract removal, hernia repairs, and many orthopedic procedures can now be safely done in ASCs.
ASCs and outpatient labs often specialize in specific procedures or diagnostic services. This specialization allows them to focus on delivering high-quality care in their respective areas of expertise. Patients benefit from the specialized skills of healthcare professionals who are well-versed in particular procedures, leading to better outcomes and a more tailored care experience. For example, Precision IR, a Farmington Hills-based center specializing in diagnosing and treating a wide range of conditions with minimally invasive techniques, now offers 4DMedical’s unique analysis to aid in diagnosing lung ailments in local veterans experiencing challenges navigating the VA Healthcare System. Veterans exposed to toxic substances and airborne hazards during service face serious challenges in both diagnosis and treatment. 4DMedical’s analytical software will enable clinicians to extract rich data on lung function from standard X-ray scans. The information allows for a non-invasive diagnosis and tailored treatment plan through advanced computational algorithms to generate objective, information-rich, lung function reports and color-coded images.
Cost Efficiency and Affordability
ASCs and outpatient labs have lower operating expenses than hospitals due to their focused services and streamlined processes. This translates to lower overall costs for patients and payers without compromising the quality of care. For example, BCBS’s Health Report of America estimates that a knee or hip replacement costs 30-40% less in the outpatient setting.
Market Forces
Real estate groups like JLL, have noticed that cities with rapid job growth like Raleigh Durham, Nashville, and Austin need more healthcare care centers to accommodate rising populations. However, these new centers must physically fit within the city. It’s much more complex (or even impossible) to build a large new hospital within city limits. “Even as population growth is a major driver of new medical office construction, the density and layout of a metro area also factors into construction,” said Kari Beets, Sr. Manager, Healthcare Research, JLL. “Patients value proximity and convenience.”
Regulatory changes, such as reimbursement policies and accreditation standards, have also played a role in the growth of ASCs and outpatient labs. Government and private payers have incentivized the shift towards outpatient settings by offering reimbursement models that favor cost-effective care delivery. Additionally, market forces, including partnerships between healthcare providers and ambulatory care organizations, have contributed to the expansion of these facilities across the country.
The shift from hospitals to ASCs and outpatient labs in US healthcare reflects a multifaceted evolution driven by technological advancements, cost considerations, patient preferences, regulatory changes, and market dynamics. This transformation represents a positive step towards a more efficient, accessible, and patient-centered healthcare system, where quality care is delivered in the most appropriate setting based on individual needs and medical requirements.