HealthCare Appraisers' 2018 ASC Valuation Survey provided insight into the ASC market and surgery center characteristics.
Fifteen respondents representing over 700 surgery centers in the U.S. responded to HealthCare Appraisers' survey.
Respondents shared input on management fees:
Typical management fee rate for ASCs as a percentage of net revenue
1. 3 percent: 27 percent
2. 4 percent: 13 percent
3. 5 percent: 40 percent
4. 6 percent: 20 percent
Respondents who have minimum annual management fees
5. Have minimal fees: 53 percent
6. Don't have minimal fees: 47 percent
Respondents whose management fee charges vary based on revenue
7. Charges vary: 40 percent
8. Charges don't vary: 60 percent
Revenue thresholds at which management fees decrease
9. Less than $500,000: 33 percent
10. $500 million to $749,999,000: 33 percent
11. $750 million to $999,999,000: 17 percent
12. $10 billion to $12,4999,999,000: 17 percent
Respondents also shared which management services are provided as part of agreements:
Group purchasing organization access
13. Never: 7 percent
14. Rarely: 0 percent
15. Sometimes: 13 percent
16. Often: 7 percent
17. Always: 73 percent
Accounting
18. Never: 13 percent
19. Rarely: 0 percent
20. Sometimes: 13 percent
21. Often: 27 percent
22. Always: 47 percent
Architecture and design
23. Never: 47 percent
24. Rarely: 13 percent
25 Sometimes: 7 percent
26. Often: 7 percent
27. Always: 27 percent
Benchmarking
28. Never: 0 percent
29. Rarely: 0 percent
30. Sometimes: 0 percent
31. Often: 20 percent
32. Always: 80 percent
Coding
33. Never: 40 percent
34. Rarely: 7 percent
35. Sometimes: 13 percent
36. Often: 13 percent
37. Always: 27 percent
Corporate business development executive and staff
38. Never: 7 percent
39. Rarely: 0 percent
40. Sometimes: 20 percent
41. Often: 20 percent
42. Always: 53 percent