Becker's ASC Review

51 ASC MANAGEMENT 112 ASC benchmarks to know | 2018 By Rachel Popa H ere are 114 operations, finances and quality benchmarks in ASCs gathered from several sources across the industry. Operational e following ASC salary and benefits statis- tics are from the HealthCare Appraisers "ASC Valuation Survey 2018: How Do ASC Com- panies Assess Value?" with responses from 15 ASC companies representing more than 700 surgery centers throughout the U.S. e cen- ters include only those that are in-network. Salary and benefits 1. 10 percent to 19.9 percent of revenue: 7 percent 2. 20 percent to 29.9 percent of revenue: 87 percent 3. 30 percent to 39 percent of revenue: 7 percent Occupancy 4. 0 percent to 9.9 percent of revenue: 33 percent 5. 10 percent to 19.9 percent of revenue: 60 percent 6. 20 percent to 20.9 percent of revenue: 7 percent Drug, medical supplies and implantables 7. 10 percent to 19.9 percent of revenue: 40 percent 8. 20 percent to 20.9 percent of revenue: 60 percent Management fees 9. Management fees vary based on revenue levels: 40 percent 10. ASC management fee arrangements where a portion of the fee is at risk: 13 percent 11. Minimum fees: • Less than $100,000: 13 percent • $100,000 to $199,999: 50 percent • $200,000 to $299,999: 25 percent • More than $300,000: 13 percent 12. reshold when ASC management fees decrease: • Average annual income less than $500,000: 33 percent • $500 million to $749 million: 33 percent • $750 million to $999 million: 17 percent • $10 billion to $12.49 billion: 17 percent 13. Billing fees as a percentage of net revenue: • 2 percent to 2.9 percent: 10 percent • 3 percent to 3.9 percent: 10 percent • 4 percent to 4.9 percent: 38 percent • 5 percent to 5.9 percent: 19 percent • 6 percent to 6.9 percent: 14 percent • More than 7 percent: 10 percent Staffing e following statistics are based on VMG Health's Intellimarker Ambulatory Surgical Centers Financial & Operational Benchmark- ing Study 2018 report. e study comprises an analysis of more than 275 licensed freestand- ing ASC, covering more than 1.3 million cases. 14. Employee salaries and wages: • As a percentage of net revenue: 22 percent • Per square foot: $136 • Per operating room: $516,000 • Per case: $442 15. Employee benefits: • As a percentage of net revenue: 5.2 percent • Per square foot: $32 • Per operating room: $121,000 • Per case: $104 16. Staff hours per case: • Nurse: 6.6 • Tech: 3.0 • Administrative: 4.3 • Total: 13.6 17. Hourly wages: • Nurse: $36.68 • Tech: $23.83 • Administrative: $27.44 Working capital e following statistics are based on VMG Health's Intellimarker Ambulatory Surgical Centers Financial & Operational Benchmark- ing Study 2018 report. Atlantic 18. Cash and equivalents: $564,000 19. Percent of total operating expenses: 9.4 percent 20. Days cash on hand: 34.5 21. Net accounts receivable: $769,000 22. Percent of net operating revenue: 8.6 percent 23. Net working capital: $1.14 million Midwest 24. Cash and equivalents: $695,000 25. Percent of total operating expenses: 9.1 percent 26. Days cash on hand: 33.1 27. Net accounts receivable: $1.08 million 28. Percent of net operating revenue: 11.0 percent 29. Net working capital: $1.36 million Mountain 30. Cash and equivalents: $463,000 31. Percent of total operating expenses: 6.0 percent 32. Days cash on hand: 22.1 33. Net accounts receivable: $761,000 34. Percent of net operating revenue: 8.5 percent 35. Net working capital: $1.14 million Northeast 36. Cash and equivalents: $672,000 37. Percent of total operating expenses: 10.4 percent 38. Days cash on hand: 38.1 39. Net accounts receivable: $1,118,000 40. Percent of net operating revenue: 48.6 percent 41. Net working capital: $1.37 million Pacific 42. Cash and equivalents: $758,000 43. Percent of total operating expenses: 9.5 percent 44. Days cash on hand: 34.7 45. Net accounts receivable: $965,000 46. Percent of net operating revenue: 10.2 percent 47. Net working capital: $1.38 million South 48. Cash and equivalents: $889,000 49. Percent of total operating expenses: 11.7 percent 50. Days cash on hand: 42.8 51. Net accounts receivable: $836,000 52. Percent of net operating revenue: 7.5 percent 53. Net working capital $1.27 million Payer mix e following statistics are based on VMG Health's Intellimarker Ambulatory Surgical Centers Financial & Operational Benchmark- ing Study 2018 report. . 54. Medicare: • Mean: 29 percent • 25th percentile: 17 percent • Median: 27 percent • 75th percentile: 39 percent • 90th percentile: 49 percent 55. Medicaid: • Mean: 10 percent • 25th percentile: 4 percent • Median: 6 percent • 75th percentile: 13 percent • 90th percentile: 25 percent 56. Commercial: • Mean: 54 percent • 25th percentile: 41 percent • Median: 55 percent • 75th percentile: 65 percent

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