5 Things to Know About ASC Management Fees

What management fees do ASC management and development companies charge the centers they manage? Here are five things to know about ASC management fees, according to HealthCare Appraisers’ 2010 ASC Valuation Survey, which includes responses from 17 organizations representing over 500 surgery centers throughout the country.

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1. Most respondents (43 percent) say they charge a minimum of five percent of net revenue as their management fee. Twenty-three percent charge at least six percent and 22 percent charge at least four percent.

2. A majority of respondents (59 percent) do not change a flat annual minimum management fee.

3. A majority of respondents (60 percent) vary their management fee (on a sliding scale) based on revenue levels of the ASC.

4. A majority of respondents (53 percent) also vary their management fee based on the level of services provided.

5. Respondents were widely split in terms of the general minimum management fee charged. The two responses most selected were $75,001-$100,000 charged and greater than $150,001 charged, with each selected by 31 percent of respondents.

To receive a copy of the 12-page Healthcare Transactions 2010 ASC Valuation Survey, please contact HAI at info@hcfmv.com or (561) 330-3488 or download a PDF version at www.healthcareappraisers.com.

Learn more about ASCs from HealthCare Appraisers’ surveys:

3 Things to Know About the De Novo ASC Market

5 Things to Know About the ASC Acquisition Market

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