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Becker’s Healthcare Podcast
Federal Healthcare Policy and Ascension’s Major Ambulatory Expansion with Alan Condon
00:06:14
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Transcript6 lines
- [00:00]
A
This is Scott Becker with the Becker's Healthcare podcast. I'm thrilled today to be joined by incredible leader and incredible human being Alan Condon. And Alan's the editor in chief at Becker's Healthcare. He just does an incredible job point just regularly to share with us a couple of the top stories that he's watching in health care. Alan, let me turn it to you. You are the Rory McElroy of Becker's Healthcare. Tell us what stories you're watching currently.
- [00:28]
B
The Rory McElroy of Becker's Healthcare. I'll take it. Thank you for the kind words and always a pleasure to be back on with you, Scott. So I think first and foremost, I think just obviously everyone in healthcare been paying close attention to what's been happening in the House and the Senate regarding ACA subsidies, the federal shutdown. So I think just to first and foremost catch folks up to date with this, the Senate on Monday night voted to pass a spending package that would essentially fund the Federal Government through January 30, 2026. But importantly, a decision on an extension of the ACA Enhanced Premium Tax credits, key issue for Democrats, will have to wait for a separate vote until December. Now, I think importantly, this will have to move to the House, which we expect a vote on on Wednesday, November 12, likely the earliest so before it lands on the president's desk as well. So I think the spending agreement would allow, like I said, the Senate to vote in December on legislation that would potentially extend the ACA subsidies, which are set to expire at the end of 2025. It will also deliver back pay to federal employees and reverse layoffs of several thousand federal workers that were implemented shut down. A lot of the other departments, including hhs, would be funded through the end of January as well. So I think the last key takeaway here as it relates to hospitals and health systems is this agreement would likely reimburse providers for Medicare telehealth visits that haven't been paid during the federal shutdown. So telehealth claims, for example, would be paid retroactive to October 1st and claims reimbursed at a lower rate because of geographic rule changes would likely be reprocessed. So many not a done deal yet by any stretch of the imagination. As I said, still has to pass the House vote before it lands at a president's desk. But a quick update there and we're paying close attention as to what we see on Capitol Hill this week.
- [02:29]
A
No, simply fascinating to see. You know, for those of us traveling, we're all concerned about the traffic control and whether there's enough of them. And so we'll see. And then in healthcare, obviously, big implications of this bill and very complicated. Thank you. Besides watching this government shutdown and what it means for the aca, what else are you watching currently?
- [02:50]
B
Yeah, absolutely. I think fantastic event last week, as you know. You were there yourself, Scott. I think we had our CEO and CFO roundtable, number of fantastic leaders across the healthcare space conversion in Chicago for this one. So a couple of leaders that I was particularly excited about interviewing about on a keynote panel was some some of the key leaders at Ascension. So namely Ascension CFO Saurabh Tripathi and also their chief strategy officer Amber Sim. So kind of pick their brains a little bit on one of the biggest deals we're paying closest attention to in this year, and that's Ascension's planned acquisition of AMCERG $3.9 billion deal. This would essentially give Ascension ownership and operation ability over 250, 50ambulatory surgery centers across 34 different states. Huge, huge scale, which would really get it ahead, accelerate its transformation, its push into the outpatient space. So according to leaders at Ascension, they expect this deal to be over the line and finalized pending regulatory approval. Some customary closing conditions could be the end of 2025 or very early 2026. So huge acquisition. That noted, every nonprofit system has their eyes on Ascension. Essentially taking a leaf out of what Tennant has done a fantastic job with its outpatient ambulatory surgery arm in uspi really continues to grow. The number one outpatient surgery center operator in that space, Ascension would be right up there, just a little bit behind USPI if it does indeed complete its acquisition of amcirg. Again, I think Ascension went through a period of real instruction over the last three or three or four years or so, down from about 140 hospitals three years ago to about 100 hospitals now. Exited some markets, realigned its portfolio on the hospital side. And this acquisition, really a huge strategic lever, a huge transformation that the leaders at Ascension are excited about. I think just the last note on this is as far as integration goes, Ascension really sees, wants to keep this business, of course, under the Ascension umbrella. But given the size, the scale of Amsterdam already, the great leaders operating that company wants to keep them somewhat separate and then use it as a strategic lever to continue to evolve, continue to expand through more m and as through more capital builds in the ASC space. So really interesting deal that no doubt a lot of leaders will have their eyes on. Not over the line yet, but really excited to see at the end of 2025 or very, very early 2026, that deal potentially get over the line.
- [05:40]
A
Yeah. And just fascinating to hear and to watch both what's going on in D.C. and then what's going on with Ascension and Amsarch. This is, I think, the third transition of Amsterdam in the last several years, but fascinating to watch. And again, between Amsarch and Ascension, it'll be a huge ASC change. Just like you're talking about USPI Tenant, what they did. This feels very similar, but on the not for profit side. Thank you so much for joining us today. Alan, always great to visit with you. Thank you for being with us on the Becker Healthcare podcast. You are fantastic. Thank you.
- [06:10]
B
Back at you. Thank you so much, Scott. Always a pleasure.