Operating Expense Analysis for Orthopedic-Driven ASCs

Written by Rob Kurtz | August 27, 2010

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Orthopedic-driven ASCs (facilities with greater than 50 percent of their case volume in orthopedics) commit an average of 71.3 percent of their net revenue to operating expenses, according to VMG Health's 2009 Intellimarker. Here is a breakdown of where orthopedic-driven ASCs spend their money.

1. Medical and surgical costs — 22.7 percent

2. Employee salary and wages — 21.5 percent

3. Total general and administrative costs — 13.1 percent

• Management fees: 5.5 percent
• Bad debt: 1.7 percent
• Other: 9.4 percent

4. Occupancy costs — 7.9 percent

5. Depreciation and Amortization — 6.0 percent

6. Taxes and benefits — 3.9 percent

7. Other medical costs — 2.2 percent

8. Insurance — 1.5 percent

Information comes from VMG Health's Intellimarker benchmarking study. VMG Health is a leading valuation and transaction advisory firm in healthcare. To receive a complimentary copy of VMG Health's 2009 Intellimarker, click here.

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