Market Snapshot

The Growth of ASCs for Orthopedic Procedures

The growth of orthopedic procedures in ASCs represents a significant opportunity for medical device companies.

September 23, 2024

Managing Director & Founder, MedTech Strategies

Since the opening of the first ambulatory surgery center (ASC) in 1970, there has been a significant shift in the location of procedures. Today, almost 75% of all surgeries are performed as outpatient procedures, and more than half of those take place in an ASC.¹

The change in procedure location has impacted many specialties, and this is definitely true in orthopedics. In 2023, the U.S. orthopedic ASC market was valued at approximately $10.6 billion and is expected to grow to over $15 billion in the next 10 years (Table 1).² This nearly 4.5% CAGR provides opportunities for manufacturers to continue innovating and providing ways to improve the effectiveness and efficiency of procedures performed in ASCs; however, this growth presents both opportunities and challenges for medical device manufacturers. To succeed in this evolving market, orthopedic device manufacturers must understand the unique needs of ASCs and develop innovative products to meet the needs of the clinicians and administrators working at the centers.

Table 1: The U.S. orthopedic ASC market size²

ASCs consider their priorities and constraints differently than hospitals. Cost pressures are more acute, as reimbursement rates are typically lower. ASCs also place a premium on efficiency, requiring devices that enable quick procedures and fast patient recovery. Additionally, storage space is often limited, necessitating compact equipment and streamlined inventory management. This all means the “full-system” options that were typically offered to hospital purchasing managers are often not right-sized for the ASC.

MORE INFO: Designing Specifically for the Ambulatory Surgical Center Environment

Several manufacturers have embraced these differences and offered ASC-oriented websites and product families to address their specific needs. These companies have tuned their offerings to address the current and growing procedures at ASCs (Table 2).

Table 2: Market share by procedure at U.S. orthopedic ASCs (2022)³

DePuy Synthes, for example, offers multiple resources on “The Building Blocks of Your ASC” website, which includes sections on Clinical Excellence, Economic Value, Operational Support, and Building Your ASC Vision, as well as opportunities for professional development.⁴ Offering support as well as customized products should help develop, maintain, and grow relationships with the ASCs outside the traditional hospital settings and is a key approach to addressing ASC needs. The new and revised product areas will be key to the future of these relationships.

While hardware and implants are a main focus of device development, there is an abundance of new and emerging software tools for the ASC. These have been designed to automate workflows, eliminate redundant tasks, or improve quality in an effort to leverage new technologies in these time-centric centers.

In 2019, research was published on the ability to implement quality improvements in ASCs as a result of the first major national effort aimed at improving quality through reducing infections and other surgical complications in the ASC setting.⁵ The team recruited 665 ASCs in 47 U.S. states and found that while there were resources available to implement quality improvement processes at ASCs, these tools and approaches to implementation needed to be directly tailored to the ASC environment. Using current tools took too much time to retrofit or reorganize to meet ASC needs compared to the hospital setting. That being said, a quick search using a typical search engine finds pages and pages of software companies looking to address needs and improvements for the ASC.

The growth of orthopedic procedures in ASCs represents a significant opportunity for medical device companies. However, success in this market requires a deep understanding of ASC needs, innovative product development, and a strategic approach to demonstrating clinical and economic value. By focusing on these areas, orthopedic device manufacturers can position themselves as key partners in the ongoing shift toward outpatient care.

The MedTech Strategies Perspective

Given the number of software offerings and the need for data and improvements in ASCs, only companies that provide the best collection of tools to streamline adoption and integration into the ASC setting will rise above the rest.

References

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Ilsa Webeck has over 25 years of work experience assessing commercial and market viability in the medtech space. Founding MedTech Strategies in 2014 and joining Simbex in 2024, she has worked with a wide range of organizations focused on assessing commercial fit and identifying product and service value propositions, as well as uncovering customer/user needs to understand a path to commercial success. Her past experiences include group product director at J&J’s DePuy Spine, leading the strategic marketing and upstream marketing team, and associate director for global commercial strategy in the MS Franchise at Biogen Idec. For more information, visit www.medtechstrategiesllc.com.