Key statistics to know on ASC valuation multiples

ASC management companies pay a premium for ASCs with a certificate of need, according to the 2019 ASC Valuation Survey by HealthCare Appraisers.

HealthCare Appraisers and the Ambulatory Surgery Center Association collected data from 26 companies, including ASC management companies, investment bankers and business brokers, to compile its report.

The key statistics to know:

1. Forty percent of respondents said ASC multiples the company considered or paid increased over the past year; thirteen percent said multiples were decreasing; and 47 percent reported there hadn't been a change in multiples from the previous year.

2. As for ASCs with an out of network strategy, respondents said they reduce multiples by:

● Less than 1.0x: 12 percent
● 1.1x to 2.0x: 46 percent
● 2.1x to 3.0x: 23 percent
● 3.1x to 4.0x: 12 percent
● Greater than 4.0x: 7 percent

3. Premiums paid for ASCs with a certificate of need:

• Less than .50x multiple: 21 percent
• .50x to 1.00x multiple: 55 percent
• 1.01x to 1.50x multiple: 10 percent
• 1.51x to 2.00x multiple: 10 percent
• Greater than 2.00x multiple: 4 percent

More articles on benchmarking:
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What percentage of physicians live beyond their means?
How hospital outpatient visits have grown since the '70s

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