Two global companies, Zimmer Biomet and CBRE Group, Inc., are joining forces to develop orthopedic ambulatory surgery centers (ASCs) throughout the United States.
Zimmer Biomet will contribute its expertise in medical technology. CBRE will contribute its commercial real estate and investment knowledge. Together the companies will, according to Zimmer Biomet, offer a “comprehensive, turnkey solution to surgeons and institutions looking to expand their orthopedic ASC footprint.” The partnership will focus on both creating and outfitting orthopedic ASCs.
The partnership and other key growth strategies were announced at Zimmer Biomet’s 2024 Investor Day. In the Zimmer Biomet 2024 Investor Day presentation, “compelling ASC market trends” were highlighted including the “clear and increasing shift of orthopedic procedures to ASC site of care.”
When discussing the partnership the presentation highlighted “existing partnerships with surgical equipment and ASC management companies.” It also disclosed that there are “additional partnerships in progress.”
At Zimmer Biomet’s 2024 Investor Day, Zimmer Biomet provided a detailed review of its top concerns and long-term plan for growth and value creation. It indicated that it would be “accelerating growth through ASC solutions.” It also discussed “compelling ASC market trends” including the more than $7 billion 2023 Orthopedics ASC market as well as the “January 2024 effective date of CMS [Centers for Medicare and Medicaid Services] approval for Total Shoulder Arthroplasty in ASCs.”
Zimmer Biomet President and Chief Executive Officer Ivan Tornos commented, “Over the last five years, Zimmer Biomet has undergone a true transformation to become a stronger company with a bright future.”
Tornos continued, “Today, as a global leader in MedTech and Orthopedics, we are laser focused on providing customer-centric solutions designed to reduce safety concerns, maximize efficiency and deliver best-in-class clinical outcomes. We are confident that as we move forward from this position of strength, Zimmer Biomet will continue to innovate, execute and allocate capital to maximize shareholder value.”
Expansion to orthopedic ASCs seems on trend for the coming years. For OTW’s coverage of growth in ASCs, see “ASC Ortho Procedure Volume – 12% Growth Next Five Years.”
