4 statistics on ASC management fees

Written by Eric Oliver | April 30, 2018 | Print  |

HealthCare Appraisers released their 2018 ASC Valuation Survey which offers insights into ASC valuation and ownership trends.

HealthCare Appraisers surveyed 15 respondents that represented 700-plus surgery centers throughout the country.

Here are four statistics on ASC management fees.

1. Sixty percent of respondents said their typical management fees were between 5 percent and 6 percent of net revenue. Forty percent reported fees between 3 percent and 4 percent of net revenue. The management fees reported were consistent with what respondents said in last year's survey as well.

2. Of respondents who reported charging a minimum management fee (53 percent), 50 indicated their fee is between $100,000 and $199,999 annually, whereas 40 percent charged a fee that varied based on revenue generated by an ASC.

3. Thirteen percent of respondents said they had performance-based fee arrangements, whereas 87 percent said they had no performance-based arrangements.

4. Sixty percent observed typical fees for billing and collections, ranging from 4.0 percent to 5.9 percent of collections, however 40 percent collected between 3.0 percent and 3.9 percent of collections.

More articles on benchmarking:
Stryker CEO sees orthopedics moving to ASCs — But how fast?
4 things to know about Salix Pharmaceuticals
Exact Sciences surpasses investor predictions — Cologuard revenue hits $90.3M

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.