Chicago-based CommonSpirit Health has launched CommonSpirit Ambulatory Ventures, a new division aimed at organizing and expanding the health system’s ambulatory surgery center portfolio.
The move is part of CommonSpirit’s broader effort to diversify beyond acute care and “accelerate growth” in ambulatory services, according to financial documents published Oct. 1. The system said the new division will establish an ASC vertical “from which to organize and enhance our current and future capability in the ASC space.”
CommonSpirit currently has 239 ambulatory joint ventures spanning dialysis, imaging, oncology and other services. That portfolio includes 80 ASCs, either wholly owned or operated through partnerships, along with six specialty surgical hospital partnerships.
The ambulatory push is part of a larger portfolio transformation strategy at CommonSpirit as the 136-hospital system looks to shift some of its growth away from acute care and into lower-cost outpatient settings. CommonSpirit said it is pursuing national and market-based growth initiatives, strategic partnerships and potential divestitures as it reshapes its portfolio.
“CommonSpirit is working to identify diversified revenue opportunities that expands CommonSpirit from a heavier weighting in acute care, to quickly scale critical ambulatory services that support CommonSpirit’s ability to reach out into each of the communities it serves to care for its patients,” the system said in the report.
The health system also identified ambulatory expansion as one of several efforts intended to improve operating performance. Its priorities include volume growth, physician enterprise expansion, network integrity and better utilization of perioperative and imaging capacity.
CommonSpirit reported a $430 million operating loss (-1% margin) before special charges for the year ended June 30, compared with a $687 million loss (-1.8% margin) the year prior. Including $2.8 billion in special charges, CommonSpirit posted an operating loss of $3.2 billion (-7.5% margin). Of those charges, $2.3 billion is tied to the system’s exit from Conifer Health Solutions.
The ambulatory strategy is one piece of CommonSpirit’s broader plan to strengthen financial performance and expand access as it develops its CommonSpirit 2030 strategic plan. The system said it is also focused on improving commercial contracting, insourcing revenue cycle operations, standardizing IT systems and pursuing organic growth through better care coordination and network retention.
