Liquidity Analysis for Surgery Centers By Annual Case Volume

Here are the median amounts of cash, net accounts receivable and working capital for surgery centers and their relative percentages of total assets, based an ASC’s annual case volume, according to VMG Health’s 2009 Intellimarker.

Advertisement

1. Cash

  • All facilities — $511,000
  • Less than 3,000 cases — $271,000
  • 3,000-5,999 cases — $414,000
  • More than 5,999 cases — $637,000

2. Cash as a percent of total assets

  • All facilities — 15.8 percent
  • Less than 3,000 cases — 12.3 percent
  • 3,000-5,999 cases — 17.8 percent
  • More than 5,999 cases — 15.1 percent

3. Net A/R

  • All facilities — $653,000
  • Less than 3,000 cases — $384,000
  • 3,000-5,999 cases — $597,000
  • More than 5,999 cases — $829,000

4. Net A/R as a percent of total assets

  • All facilities — 21.1 percent
  • Less than 3,000 cases — 21.2 percent
  • 3,000-5,999 cases — 21.2 percent
  • More than 5,999 cases — 20.9 percent

5. Working capital

  • All facilities — $900,000
  • Less than 3,000 cases — $421,000
  • 3,000-5,999 cases — $802,000
  • More than 5,999 cases — $1.1 million

6. Working capital as a percent of net revenue

  • All facilities — 13.5 percent
  • Less than 3,000 cases — 9.6 percent
  • 3,000-5,999 cases — 13.7 percent
  • More than 5,999 cases — 13.9 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.

Advertisement

Next Up in ASC Transactions & Valuation Issues

Advertisement

Comments are closed.