7 Market Risk Factors That Impact an ASC’s Value

Specific characteristics of the area in which an ASC is located can have a direct impact on the ASC’s value. Here are seven specific market risk factors and the relative importance ASC operators place on each factor, according to VMG Health’s ValueDriver ASC Risk Assessment Survey.

Advertisement

1. Existence of Certificate of Need requirements

  • Very low — 0 percent
  • Low — 0 percent
  • Medium — 14 percent
  • High — 55 percent
  • Very high — 31 percent

2. Hospitals in the market that are actively employing surgeons/specialists

  • Very low — 0 percent
  • Low — 5 percent
  • Medium — 27 percent
  • High — 41 percent
  • Very high — 27 percent

3. Demographics of the patient population base

  • Very low — 5 percent
  • Low — 32 percent
  • Medium — 45 percent
  • High — 14 percent
  • Very high — 4 percent

4. Historical/expected population growth of the market

  • Very low — 0 percent
  • Low — 32 percent
  • Medium — 50 percent
  • High — 18 percent
  • Very high — 0 percent

5. Level of competition from competing ASCs/surgical hospitals

  • Very low — 0 percent
  • Low — 0 percent
  • Medium — 41 percent
  • High — 32 percent
  • Very high — 27 percent

6. Dominance of a single payor in the market

  • Very low — 0 percent
  • Low — 5 percent
  • Medium — 27 percent
  • High — 45 percent
  • Very high — 23 percent

7. Geographic cost impact with in the market (real estate costs, wages, etc.)

  • Very low — 5 percent
  • Low — 50 percent
  • Medium — 36 percent
  • High — 9 percent
  • Very high — 0 percent

Information comes from VMG Health’s ValueDriver ASC Risk Assessment Survey. VMG Health is a leading valuation and transaction advisory firm in healthcare. To receive a complimentary copy of VMG Health’s ValueDriver ASC Risk Assessment Survey, click here.

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Register to Attend Webinar

160 ambulatory leaders just ranked the EHR as the single system most overdue for AI reinvention

Tuesday, August 11
12:00 PM - 1:00 PM CDT

Presenter: Gautam Shah, MBA, FACHDM, NextGen Healthcare

Advertisement

Next Up in ASC Transactions & Valuation Issues

Advertisement

Comments are closed.