What Management Companies Want: 10 Statistics on Surgery Center Owners and Operators

Rachel Fields -

Here are 10 statistics on surgery center management companies, according to HealthCare Appraisers' 2010 ASC Valuation Survey.

1. Six percent of management companies are public, while 94 percent are private.

2. Most ASC management companies — 72 percent — have 10 or fewer ASCs under ownership. Eleven percent own 11-20 ASCs, six percent own 41-50 and another 11 percent own more than 51.

3. Forty percent of management companies have performed due diligence on 1-5 acquisition candidates in the last year. The rest of the responses were split relatively evenly, with 18 percent of candidates saying they had performed due diligence on no candidates and another 18 percent reporting more than 16 candidates.

4. At 65 percent, most management companies purchased no new ASCs last year. Eighteen percent purchased 1-2 centers, 12 percent purchased 5-6 and 6 percent purchasd more than seven.

5. The majority of companies (52 percent) expect to purchase 1-2 ASCs next year. Another 18 percent say they have no plans to purchase centers; 12 percent say they will buy 3-4, 12 percent say they will buy more than seven and 6 percent say they will buy 5-6.

6. The most popular specialty with management companies is general orthopedics, which received a 94 percent "desirable" rating in the survey. The next most popular was orthopedic spine (88 percent), followed by ophthalmology (82 percent), ENT (76 percent) and pain management (76 percent).

7. The least popular specialty with management companies is plastic surgery, which received a 0 percent "desirable" rating on the survey. The second least popular was GYN (29 percent), followed by urology (47 percent), podiatry (59 percent) and general surgery (65 percent).

8. Most management companies (72 percent) prefer 6-10 physician owners in single-specialty ASCs.

9. Most management companies (52 percent) prefer 11-15 physician owners in multi-specialty ASCs.

10. Preferences on equity ownership were split among management companies: Thirty-one percent desired 11-29 percent ownership, while another 31 percent preferred 30-50 percent ownership. Another 19 percent wanted a 51-75 percent ownership, and 19 percent also desired less than 10 percent. 

Read more about HealthCare Appraisers.

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