VMG's Healthcare M&A report sheds light on ASC acquisition activity in 2018, and what to expect in 2019.
The key details to know:
1. Median total invested capital in ASCs/earnings before interest, taxes, depreciation and amortization
2015
25th percentile: 5.4x
Median: 6.4x
75th percentile: 7x
2016
25th percentile: 5.8x
Median: 6.6x
75th percentile: 7.4x
2017
25th percentile: 6x
Median: 6.8x
75th percentile: 7.4x
2018
25th percentile: 6.6x
Median: 7.4x
75th percentile: 7.9x
2. The healthcare industry's shift to providing care in lower-cost outpatient settings as well as value-based care will continue to increase the rate of consolidation.
3. ASCs that embrace value-based care newly reimbursed specialties such as total joint and cardiac procedures will be prime acquisition targets.
4. VMG Health expects ASC multiples to trend neutral to favorable in 2019 due to high demand, regulation pushing volume to ASCs and good economic variables for ASCs.