Urgent care centers serve patients with non-life-threatening conditions (i.e. flu symptoms, cuts and sprains, and minor burns) on a retail basis. The formidable size and growth potential of the industry has attracted private equity investors, health plans and health systems alike. Over the last three years, VMG has performed the valuation of over 100 urgent care facilities across the United States. Clients in this fragmented industry include multi-location chain operators, health systems and independent physician owner-operators.
Transactions involving urgent care centers carry several unique considerations. The impact of center-specific and deal-specific characteristics can have profound valuation implications. Examples of center-specific determinants of value include market competition, patient demographics, location and financial performance. Deal-specific drivers of value include post-transaction provider compensation, real estate considerations (if applicable), and liability issues. As of result of the specificity required for appraisal, urgent care centers do not transact within tight industry-wide valuation ranges.
VMG has skilled professionals who are able to identify these critical valuation and transaction issues with the urgent care industry.