10 Risk Factors Most Influential on ASC Value

VMG Health's ValueDriver - ASC Risk Assessment Survey identifies what risk factors are important in defining the value of an ASC. Here are the 10 risk factors identified by survey respondents — ASC managers and operators representing over 1,000 ASCs — as those having the greatest impact and influence on their perception of ASC value, and whether their level was considered as "very high" risk or "high" risk.

1. Level to which the ASC relies upon out-of-network reimbursement to generate revenue and earnings (this was the one single risk factor that respondents revealed had the greatest impact) — Very high risk

2. Expected growth in future periods — Very high risk

3. Non-compete covenants with physician owners — Very high risk

4. Existence of a certificate of need (CON) requirement — High risk

5. Single payor dominance in the market — High risk

6. Hospitals in the market who are actively employing surgeons/specialists — High risk

7. Concentration of patient volume/revenue from a single payor — High risk

8. Contracting leverage with major payors in the market — High risk

9. Facility location (patient/physician convenience) — High risk

10. Existence of mandatory buy/sell provisions — High risk

Information comes from VMG Health's ValueDriver ASC Risk Assessment Survey. VMG Health is a leading valuation and transaction advisory firm in healthcare. To receive a complimentary copy of VMG Health's ValueDriver ASC Risk Assessment Survey, click here.

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