FTC Clears Ascension’s $3.9 Bn AmSurg Acquisition With Required ASC Divestitures
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According to the FTC, six of the facilities will be transferred to national ASC operator SC Affiliates. At the same time, the Panama City center will be acquired by Florida Gastroenterology Center, which already holds a minority ownership stake in the facility.
The Federal Trade Commission (FTC) has approved Ascension’s proposed $3.9 billion acquisition of ambulatory surgery management company AmSurg, provided the nonprofit health system divests seven ambulatory surgery centers (ASCs) in markets where the regulator identified potential competition concerns.
The proposed consent order, announced June 2, requires Ascension to divest AmSurg-owned facilities in Panama City, Florida; Tulsa, Oklahoma; Waco, Texas; Wichita, Kansas; and Nashville, Tennessee, including two centers. The divestitures must be completed before the acquisition closes.
According to the FTC, six of the facilities will be transferred to national ASC operator SC Affiliates. At the same time, the Panama City center will be acquired by Florida Gastroenterology Center, which already holds a minority ownership stake in the facility.
AmSurg operates more than 250 ambulatory surgery centers across 34 states. The FTC said combining Ascension’s existing footprint with the seven facilities could reduce competition in outpatient gastroenterology, ophthalmology, and orthopedic surgery services in the affected markets.
The regulator argued that reduced competition could result in higher healthcare costs and potentially impact quality and patient choice. As part of the agreement, Ascension must also provide transition support for up to one year and avoid interfering with employee relationships at the divested centers.
In addition, the health system will be required to notify the FTC in advance of any future ASC acquisitions within the metropolitan areas surrounding the divested facilities for the next 10 years.
Ascension first announced plans to acquire AmSurg in 2025 as part of its strategy to expand its presence in outpatient care. The St. Louis-based health system has cited growing demand for non-hospital-based surgical services and increasing outpatient procedure volumes as key drivers behind the transaction.
If completed, the acquisition would expand Ascension’s ambulatory footprint to more than 300 locations, making it the third-largest ASC platform in the country.
Earlier this year, Ascension President and CEO Eduardo Conrado said the transaction would strengthen the system’s presence in existing markets while providing access to 25 new markets through partnerships with local health systems.
Following the FTC’s approval, Ascension said it expects the acquisition to close in the near future.
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