ASC EBITDA, total joint projections and more: 5 industry trends

The ASC market is continuing to grow and has room for further consolidation, according to the 2020 VMG Health Healthcare M&A Report.

1. Median EBITDA multiples grew from around 7.4x in 2018 to 7.7x in 2019 for individual ASCs. EBITDA at the 25th percentile was 6.5x and at the 75th percentile was 8.4x last year.

2. Outpatient total joint volume is expected to grow 77 percent through 2026 while inpatient volume is expected to be flat due to changes in CMS payment policy, according to the report.

3. ASCs are now pursuing bundled payment options more than before as surgery shifts from the inpatient and outpatient setting, which makes them acquisition targets, VMG noted in the report.

4. The ASC market is still largely fragmented with 72 percent of ASCs independent.

5. The ASC Index value (market cap) dropped 38.7 percent from Feb. 19 to May 1 for publicly traded healthcare companies amid the pandemic.

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