Private Equity Acquisitions Of Ambulatory Surgical Centers Were Not Associated With Quality, Cost, Or Volume Changes

Journal: Health Affairs (Sep. 2022)
Coauthors: Joseph Bruch, Thomas Tsai and John Orav.
Assets: [ Published Version ]

Ambulatory surgical centers (ASCs) are increasingly being acquired by private equity firms, yet the implications for patient outcomes remain understudied. We employed a quasi-experimental difference-in-differences design within an event study framework to assess changes in outcomes associated with the acquisition of ASCs by private equity entities. We identified ninety-one ASCs acquired by private equity entities, and fifty-seven ASCs acquired by non–private equity entities during the period from 2011 – 2014. There was no statistically significant observed change in the probability of an unplanned hospital visit, total costs, or total encounters after acquisition by private equity relative to acquisition by non–private equity entities. Comparisons between private equity–acquired ASCs with matched ASCs that were never acquired also revealed no statistically significant relative change in the probability of an unplanned hospital visit, total costs, or total encounters.