VMG Health's 2020 "Healthcare M&A Report" examines how the coronavirus pandemic has affected the valuation of ASCs.
Three insights:
1. Valuation multiples with median total invested capital to trailing 12-month EBITDA multiples were about 7.4x in 2018, down from 7.7x in 2019.
2. ASCs that perform newly Medicare-reimbursed total joint and cardiac catheterization procedures will be acquisition targets with leverage to negotiate higher transaction multiples.
3. Involvement in bundled payment programs will also make ASCs acquisition targets.
More articles on surgery centers:
4 COVID-19 supply considerations for ASCs
5 hospitals, health systems opening or planning ASCs
ASCs reopening to patients: Check these 7 boxes