Expert opinion: Why ASC investors should temper their income expectations

Surgeon-investors shouldn’t assume ASC income will cover their buy-in loan, according to Partner John Dameron of Spaugh Dameron Tenny, a financial planning firm.

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Mr. Dameron shared the following insight on the law firm’s blog:

“Profitability of a surgery center is complex, and the forecast you’re given isn’t always accurate from an income standpoint. … make sure you have enough surplus in your budget that you can cover most of the buy-in loan — maybe all [of the buy-in loan], if it’s a new surgery center and isn’t yet profitable — and not rely on the surgery center income.”

More articles on transactions/valuation:
Northeast Georgia Medical Center Braselton building ASC — 5 insights
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What multispecialty physician groups should know about ASC ownership — 4 insights

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