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Market and Industry Analysis: US Ambulatory Services

Paper Type: Free Assignment Study Level: University / Undergraduate
Wordcount: 1724 words Published: 17th Nov 2020

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Market Size, Growth, and Trends

The market size of the U.S. ambulatory surgery center (ASC) is estimated to grow to $52- $55 billion by 2025 (PRN, 2019). A breakdown of the ambulatory surgery center in the U.S. is that 92% are in urban areas; in or near cities. ASC has improved in surgical procedures and is expected to grow. “In 2017, 5,603 Medicare-certified ASCs treated over 3.4 million Medicare fee-for-service (FFS) beneficiaries. Most ASCs (93.8%) are for profit, with 3.5% considered nonprofit and 2.7% government-owned” (PRN, 2019). At this rate in the U.S. an important factor that is likely to make a growth of ASC is the low cost and same efficiency as an inpatient center. “ASC and their associated financial incentives have the potential to exacerbate gaps in quality by encouraging the redistribution of less suitable patients; patients with multiple medical problems to these centers” (Hollenbeck et al., 2015). Therefore, Ambulatory Surgery Centers will keep growing if they keep offering affordable and high-quality surgical treatments.

Target Markets

Many years ago, all surgeries were performed in a hospital setting. Patients had to wait for months to get the surgery done, and on top of that patients typically spent several days at the hospital; no individual wants that right. Most of the surgeries done at an ambulatory surgery center are invasive procedures in these medical departments; gastroenterology, urology, ophthalmology, orthopedics and even dental. Our demographics are changing, which is affecting us human beings, before health was not a priority to many now many are making a change of lifestyle. Urologic disorders can be chronic and affect the individuals not by shortening survival, but impairing quality of life. The importance of PGM Ambulatory Surgery Center is to provide our patients more knowledge, better quality of care and affordable procedure for our orthopedic patients. Our target market is to provide better care for the rural community. To gain better market share, our facility would have to provide the best orthopedic treatments and improve patient satisfaction.

Marketing/Advertising Strategy

“According to the American Hospital Association, the number of outpatient admission increased from 624 million in 2008 to 675 in 2012, while inpatients admission decreased” (GVR, 2019). The volume of the use of ambulatory surgery centers have increased largely due to advances in technology and payment incentives. Our facility has a plan strategy to focus on having highly skilled physicians in order to have the best orthopedic surgical center in the area.

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“According to Medicare claims, approximately 7% of surgeries performed at ASCs were orthopedic in nature in 2007, which reflects a 77% increase in orthopedic procedures performed at ASCs from 2000 to 2007” (CMS, 2019).  Our facility will help lower infections and pain in orthopedic patients, this will avoid trips to the emergency room. PGM website introduces our physicians and has up to date information about our services and tools our community can use when visiting our facility. PGM ambulatory surgery center has a blog in where we provide various information to educate and guide our community about the importance of visiting a healthcare provider. Our facility is active on social media as well, we want to engage with our clients and prospective patients. PGM physicians are well involved in our social media sharing personal experience and honest answers. Our facility team would continue to update blogs, social media and personal website.We will partner with third parties to continue our growth and be transparent with our community to provide urologic surgical services. The graph below represents 2010 surgical visits in the United States.

Distribution of times for surgical visits, by ambulatory surgery facility type: United States, 2010




Ambulatory Surgery Center


All Facilities

Calculated time of ambulatory surgical visits

Average time (minutes)

Standard error


Average time (minutes)

Standard error


Average time (min)

Standard error

Operating room


















Postoperative care










(Hall, Schwartzman, Zhang, Liu, 2017)

Improving Efficiency

Making a new spaced attached to the hospital will benefit all stakeholders involved. These ambulatory surgery centers can provide better care for example listen to their patients. We want the community to choose our center as we will deliver the best treatment and lower their cost compare to nearby facilities.

PGM ambulatory surgery center will have well trained medical providers to attend patients needs. Being in a competitive industry we will come to an agreement with insurances to expand their services. “Medicare pays $1,024 for a knee arthroscopy with meniscus repair in an ASC, compared to $2,116 in an HOPD. Medicare beneficiaries without supplemental insurance have a copay of $256 in ASCs and $529 in HOPDs” (Popa, 2019). Providing these resources will increase our market share. We will offer a bonus

Industry Analysis

The rapid growth of Ambulatory Surgery centers has developed new techniques and are being recognized as efficient medical facilities. Our facility will be adopted SWOT analysis to help grow the benefits at PGM. We will focus on the following:


  • Accepts all types of insurance: Medicare, Medicaid, VA, and self-pay
  • Cost-effective alternatives
  • Excellent communication among our physicians and other employees
  • HER usage integrated with our partner hospital
  • Specialty center that meets patients’ needs and wants


  • Surgery perform only on weekdays
  • Not affiliated with other hospital


  • Expansion of specialty services
  • Transparency of prices to all our consumers
  • Low co-pays




  • Policy changes
  • Partner hospital competition
  • Competition from other ASC in the area




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