Ambulatory Surgery Center Valuation

An ambulatory surgery center (ASC) is a distinct entity that operates exclusively for the purpose of providing low-acuity surgical procedures that do not require a hospitalization, typically require less than a 24-hour stay, and do not pose a significant safety risk to the patient. ASCs perform surgical procedures in a wide range of specialties, including otolaryngology (“ENT”), gastroenterology, general surgery, obstetrics and gynecology, ophthalmology, oral surgery, orthopedics, pain management, and plastic surgery. ASCs are typically valued for individual physician investment, the sale of the ASC to a management company and/or hospital buyer, and contribution to a joint venture via merger or other affiliation. 

VMG Health has extensive valuation experience within the outpatient surgery center space, being involved with over 200 ASC valuations per year. In addition to the ASC valuation work performed, VMG Health publishes the Intellimarker Multi-Specialty ASC Benchmarking Study annually. The Intellimarker presents hundreds of operating and financial benchmarking statistics using data from ASCs located throughout the country.

Value Drivers

Determining the FMV of an ASC is reliant upon numerous variables and drivers of value. A key factor in the valuation of an ASC is understanding the physician utilizer attributes, such as ownership percentage (if any), age, specialty and any expected changes in practice patterns. In addition to the physician utilizers, other factors that can impact value include reimbursement, focus on cost containment strategies, such as staff and medical supplies, and finally, the projected capital expenditures for an ASC.

Relevant Publications & Presentations on Ambulatory Surgery Centers

ASCs in 2018: A Year in Review
New Jersey Outpatient Surgery: New Rules, New Market
ASCs in 2017: A Year in Review
VMG’s Healthcare M&A & Transactions Report: 2016 Trends & 2017 Expectations
ASC Transactions: Difference Between In-Network and Out-of-Network
ASC Reimbursement Trends: On the Up and Up