7 Market Risk Factors That Impact an ASC's Value

Specific characteristics of the area in which an ASC is located can have a direct impact on the ASC's value. Here are seven specific market risk factors and the relative importance ASC operators place on each factor, according to VMG Health's ValueDriver ASC Risk Assessment Survey.

1. Existence of Certificate of Need requirements

• Very low — 0 percent
• Low — 0 percent
• Medium — 14 percent
• High — 55 percent
• Very high — 31 percent

2. Hospitals in the market that are actively employing surgeons/specialists

• Very low — 0 percent
• Low — 5 percent
• Medium — 27 percent
• High — 41 percent
• Very high — 27 percent

3. Demographics of the patient population base

• Very low — 5 percent
• Low — 32 percent
• Medium — 45 percent
• High — 14 percent
• Very high — 4 percent

4. Historical/expected population growth of the market

• Very low — 0 percent
• Low — 32 percent
• Medium — 50 percent
• High — 18 percent
• Very high — 0 percent

5. Level of competition from competing ASCs/surgical hospitals

• Very low — 0 percent
• Low — 0 percent
• Medium — 41 percent
• High — 32 percent
• Very high — 27 percent

6. Dominance of a single payor in the market

• Very low — 0 percent
• Low — 5 percent
• Medium — 27 percent
• High — 45 percent
• Very high — 23 percent

7. Geographic cost impact with in the market (real estate costs, wages, etc.)

• Very low — 5 percent
• Low — 50 percent
• Medium — 36 percent
• High — 9 percent
• Very high — 0 percent

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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