5 Legal and Partnership Factors That Impact a Surgery Center’s Value

Here are 5 statistics on legal and partnership risk factors in ambulatory surgery centers, according to VMG Health’s ValueDriver ASC Survey 2011. In compiling the survey, VMG spoke with leaders of the 20 of the largest ASC management and operating companies in the United States. Note: The choice which received the most responses is italicized.

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Rachel Fields

1. Lack of adequate non-compete covenants with physician owners:
Very high impact: 53 percent
High impact: 27 percent
Medium impact: 7 percent
Low impact: 0 percent
Very low impact: 13 percent

2. Lack of mandatory buy/sell provisions (upon retirement, death, disability, etc):
Very high impact: 27 percent
High impact: 40 percent
Medium impact: 7 percent
Low impact: 7 percent
Very low impact: 20 percent

3. Lack of partnership eligibility requirements (safe harbor, etc.):
Very high impact: 7 percent
High impact: 21 percent
Medium impact: 21 percent
Low impact: 29 percent
Very low impact: 21 percent

4. ASC ownership structure (LP, LLP, LLC, etc.):
Very high impact: 0 percent
High impact: 0 percent
Medium impact: 14 percent
Low impact: 29 percent
Very low impact: 57 percent

5. Overall impact on value:
Structure: Very low impact
Eligibility: Low impact
Buy/sell provisions: High impact
Non-compete: Very high impact

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