Here are 10 statistics on ASC management and development companies, based on data from HealthCare Appraisers' 2010 ASC Valuation Survey. Seventeen companies representing over 500 U.S. surgery centers responded to the survey.
1. Ninety-four percent of responding management and development companies said they were private, while 6 percent said they were public.
2. Most companies (72 percent) had 10 or fewer ASCs under ownership. Eleven percent of companies said they owned 11-20 ASCs, while 6 percent reported owning 41-50 ASCs and another 11 percent reported owning more than 51 centers.
3. Forty percent of companies said they had performed due diligence on 1-5 potential acquisition candidates over the last year. Eighteen percent of companies said they had performed due diligence on 16 or more candidates; another eighteen percent reported due diligence for no candidates. Twenty-four percent had performed due diligence on 6-15 candidates, with 12 percent performing due diligence on 6-10 candidates and 12 percent performing due diligence on 11-15.
4. Most companies (65 percent) said they had not purchased any ASCs in the last year. Eighteen percent said they had purchased between one and two; 12 percent reported they had purchased between five and six; and 6 percent said they bought seven or more centers.
5. For single-specialty ASCs, most companies (72 percent) preferred 6-10 active physician owners. Eleven percent responded 1-5 active physician owners was preferable; another 11 percent felt 11-15 was the right number. No companies preferred 16-20 owners, and only 6 percent said 21 or more owners was preferable.
6. For multi-specialty ASCs, more than half of companies (52 percent) preferred 11-15 active physician owners. Another 24 percent preferred 16-20 physician owners, and 12 percent each preferred 6-10 owners and more than 21 owners.
7. Nearly half of companies financed their ASC acquisitions through "mostly debt," at 47 percent. Thirty-five percent of companies financed their acquisitions through "mostly cash."
8. Seventy percent of companies determine fair-market value for buy-out transactions through a predetermined formula. Eighteen percent use an independent FMV opinion, 6 percent use independent pricing analysis and 6 percent use a board-determined amount.
9. The vast majority of companies (94 percent) say their company's posture with respect to selecting new ASC opportunities is "opportunistic" rather than "planned."
10. Most ASC management and development companies prefer to acquire de novo ASCs, with 82 percent of companies responding that they prefer de novo development opportunities. Another 41 percent prefer established cash-flowing centers, and 29 percent prefer turnaround situations.
Read more about HealthCare Appraisers.
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-18 Statistics About General Surgery in Ambulatory Surgery Centers
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1. Ninety-four percent of responding management and development companies said they were private, while 6 percent said they were public.
2. Most companies (72 percent) had 10 or fewer ASCs under ownership. Eleven percent of companies said they owned 11-20 ASCs, while 6 percent reported owning 41-50 ASCs and another 11 percent reported owning more than 51 centers.
3. Forty percent of companies said they had performed due diligence on 1-5 potential acquisition candidates over the last year. Eighteen percent of companies said they had performed due diligence on 16 or more candidates; another eighteen percent reported due diligence for no candidates. Twenty-four percent had performed due diligence on 6-15 candidates, with 12 percent performing due diligence on 6-10 candidates and 12 percent performing due diligence on 11-15.
4. Most companies (65 percent) said they had not purchased any ASCs in the last year. Eighteen percent said they had purchased between one and two; 12 percent reported they had purchased between five and six; and 6 percent said they bought seven or more centers.
5. For single-specialty ASCs, most companies (72 percent) preferred 6-10 active physician owners. Eleven percent responded 1-5 active physician owners was preferable; another 11 percent felt 11-15 was the right number. No companies preferred 16-20 owners, and only 6 percent said 21 or more owners was preferable.
6. For multi-specialty ASCs, more than half of companies (52 percent) preferred 11-15 active physician owners. Another 24 percent preferred 16-20 physician owners, and 12 percent each preferred 6-10 owners and more than 21 owners.
7. Nearly half of companies financed their ASC acquisitions through "mostly debt," at 47 percent. Thirty-five percent of companies financed their acquisitions through "mostly cash."
8. Seventy percent of companies determine fair-market value for buy-out transactions through a predetermined formula. Eighteen percent use an independent FMV opinion, 6 percent use independent pricing analysis and 6 percent use a board-determined amount.
9. The vast majority of companies (94 percent) say their company's posture with respect to selecting new ASC opportunities is "opportunistic" rather than "planned."
10. Most ASC management and development companies prefer to acquire de novo ASCs, with 82 percent of companies responding that they prefer de novo development opportunities. Another 41 percent prefer established cash-flowing centers, and 29 percent prefer turnaround situations.
Read more about HealthCare Appraisers.
Read more statistics about ambulatory surgery centers:
-18 Statistics About General Surgery in Ambulatory Surgery Centers
-Average Total Compensation for 7 Specialties Found in Surgery Centers
-6 Factors That Affect Average Medical Coder Salary