Published by Becker’s Hospital Review
Participants in the ASC industry are generally keenly aware of the common factors that can impact ASC valuation. Amongst others, these can include the number and age of physician owners, competition in the market, availability of new recruits, reimbursement pressure, facility and equipment needs and specialty mix. There are, however, a number of lesser known dynamics that can ultimately impact ASC value.
1. Historical marketability of the ASC’s ownership units. An important, however often overlooked, component of risk, the center’s historical ability to market it shares and recruit new doctors provides a telltale sign of the availability of physicians in the market as well as management’s skill in recruiting new doctors. It has been well documented that there is an increasing shortage of available physician investors in many markets. Despite this trend, an ASC that has demonstrated the ability to consistently recruit new physicians will be more likely than its competitors to garner new physician investment in the future. As such, when determining value it is just as important to look at the frequency of past transactions as it is to forecast future trends.