The Federal Trade Commission announced on June 2 that it will require Ascension Health Alliance to divest several ambulatory surgery center facilities as a condition for completing its proposed $3.9 billion acquisition of AmSurg LLC. The action is intended to protect patients from potential increases in outpatient surgery costs and preserve competition in the affected markets.
Ascension’s acquisition of AmSurg, a subsidiary of Ambulatory Topco LLC, would combine two major providers of outpatient surgical services, including procedures such as cataract surgeries and colonoscopies. Under the FTC’s proposed consent order, Ascension must divest seven AmSurg ambulatory surgery centers located in Nashville, Tennessee; Panama City, Florida; Tulsa, Oklahoma; Waco, Texas; and Wichita, Kansas.
Six of these centers will be transferred to SC Affiliates, which operates ambulatory surgery centers nationwide. The seventh center in Panama City will go to Florida Gastroenterology Center, a physician group currently holding a minority stake in the facility, who will assume full ownership.
Daniel Guarnera, Director of the FTC’s Bureau of Competition, said: “Access to quality surgical care at an affordable price is critically important for millions of Americans across the country. The FTC’s action ordering divestitures of surgical care centers will help preserve a competitive market that will allow patients to get the care they need at a fair price.”
The FTC alleges that without these divestitures, competition would be limited for certain outpatient surgical services performed by gastroenterologists, ophthalmologists, and orthopedists across five metropolitan areas. This could lead to higher prices for patients and potentially lower quality or less innovation in surgical services.
As part of the order’s requirements: Ascension and related parties must provide transition assistance for up to one year; protect confidential information; maintain viability at the affected facilities until transfer; refrain from interfering with employment relationships at those locations; and submit any future acquisitions involving similar facilities within those regions for prior review by the Commission over ten years. A monitor will oversee compliance with all obligations outlined by the order.
The public has 30 days to submit comments on this proposed consent agreement package through Regulations.gov.