15 statistics on out-of-network ASC valuation

ASC companies adjust their valuation models and pricing for centers based on the volume of out-of-network cases, according to the HealthCare Appraisers 2016 ASC Valuation Survey Results.

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Here are 15 statistics:

Out-of-network adjustment approaches

1. Convert revenue to total in-network: 63 percent
2. Apply higher risk factor/discount rate: 16 percent
3. Adjust multiples downward: 5 percent
4. Combination: 5 percent
5. Cannot generalize: 5 percent
6. Reduced out-of-network by 50 percent then apply market multiple: 5 percent

Out-of-network multiple adjustment for centers not contracted with any commercial payers

7. Less than 0.5 multiple: 0 percent
8. 0.51 to 1.5 multiple: 10 percent
9. 1.51 to 2.0 multiple: 20 percent
10. More than 2.0 multiple: 70 percent

Percentage of total revenue in out-of-network volume that exceeds risk tolerance for the ASC company

11. Twenty percent OON: 53 percent
12. Forty percent OON: 26 percent
13. Sixty percent OON: 0 percent
14. Eighty percent OON: 0 percent
15 No threshold: 21 percent

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