Impact of Referral Volume on Surgery Center Value: Q&A With Curtis Bernstein of Sinaiko Healthcare Consulting

Curtis Bernstein, CPA/ABV, ASA, CVA, MBA, is managing director of valuation services for Sinaiko Healthcare Consulting.


Q: Does the volume of referrals from our physicians impact our ambulatory surgery center's value?


Curtis Bernstein: While having physicians refer cases to a surgery center (or any other healthcare business) is extremely important from a business, operational or financial perspective, such referrals cannot be considered in determining the value of the surgery center.


The Anti-Kickback law directly restricts the valuator from considering the value or volume of referrals in any analysis to determine the market value of a surgery center interest.


Overall, projections used under an income approach should be based on what the center can achieve utilizing expected run rates and not directly consider what individual physicians have or are able to refer.


Learn more about Sinaiko Healthcare Consulting.

Read more about surgery center valuation:


- Growing ASC Trend: Sell to a Hospital and Manage the Surgical Unit


- 6 Key Legal Issues Facing Ambulatory Surgery Centers


- ASC Transactions and Pricing During 2010: 4 Key Concepts

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