How Surgery Centers Drive Platform Economics
When Unifeye Vision Partners added Brooks Eye Associates’ ambulatory surgery center to its portfolio of 19 ASCs, it wasn’t merely expanding capacity—it was securing the high-margin engine that makes Reeve Waud’s ophthalmology consolidation strategy financially compelling.
The ASC Value Proposition in Vision Care
Ambulatory surgery centers represent the sweet spot of healthcare real estate, combining recurring revenue streams with defensive market characteristics. Ophthalmology leads all specialties with 26% of Medicare-certified single-specialty ASCs, reflecting both procedural volume and reimbursement stability.
The migration from hospital-based to ASC-based care accelerated dramatically over the past two decades. Cataract procedures performed in ASCs jumped from 43% in 2001 to 73% today, driven by patient cost savings averaging 45% compared to hospital outpatient departments. This trend creates substantial tailwinds for platforms like UVP that emphasize ASC ownership.
Dr. Dain Brooks’ ambulatory surgery center in Plano performs approximately 4,500 annual procedures, demonstrating the operational efficiency that attracts Waud Capital Partners to ASC-integrated practices. These facilities generate higher margins than clinic-only operations while providing patients with convenient, cost-effective surgical care.
Operational Excellence Through Scale
Reeve Waud’s healthcare investment philosophy emphasizes operational leverage, and ASC ownership exemplifies this approach. Individual ASCs struggle with equipment utilization, staffing optimization, and payer negotiations. Platform ownership enables sophisticated operational improvements impossible for standalone facilities.
Waud Capital Partners’ platform strategy allows UVP to standardize surgical protocols, share expensive equipment across locations, and implement best practices throughout its ASC network. Mike Lehman, Principal with Waud Capital Partners, noted the Brooks partnership emphasizes “ambulatory surgical operations and high-quality patient care” as core value drivers.
The compound effect of ASC efficiency gains creates competitive advantages that independent operators cannot match. Platforms can negotiate better implant pricing, optimize surgical scheduling, and implement technology solutions that require scale for return on investment.
Financial Engineering Through Facility Ownership
ASCs generate recurring facility fees separate from professional fees, creating dual revenue streams that enhance platform valuations. These facility fees provide predictable cash flows that support debt financing while professional fees drive growth through volume increases.
Reeve Waud’s track record building healthcare platforms demonstrates understanding of how real estate ownership amplifies returns. ASC ownership changes practice valuation multiples by adding hard asset value and recurring revenue components. The Brooks Eye ASC brings both immediate cash flow and long-term appreciation potential to UVP’s portfolio.
Building Regional ASC Networks
Waud Capital Partners’ geographic expansion strategy gains additional leverage through ASC clustering. Regional ASC networks enable coordinated payer negotiations, shared on-call coverage, and efficient resource allocation across multiple facilities.
UVP’s growing Texas presence, anchored by practices like Brooks Eye Associates, creates opportunities for ASC network effects. Platforms with multiple ASCs in proximity can optimize patient flow, share specialized equipment, and provide backup capacity during maintenance or emergencies.
The strategic importance of ASC ownership will only increase as healthcare continues migrating toward outpatient settings. Reeve Waud’s emphasis on ASC-integrated practices through Waud Capital Partners positions UVP advantageously for this secular trend.
ASC ownership transforms ophthalmology practices from professional service businesses into healthcare infrastructure plays. The Brooks Eye Associates partnership demonstrates how sophisticated investors like Waud Capital Partners recognize ASCs as the crown jewels that drive sustainable platform economics and competitive differentiation.
