Issue link: https://beckershealthcare.uberflip.com/i/190596
Transactions/Valuations 30 7 Statistics on ASC Offering Price AMA Report: 60% of Physicians in Physician-Owned Groups By Carrie Pallardy By Laura Miller H A ere are seven statistics on how ambulatory surgery center management and development companies determine and adjust the offering price of an ASC, according to VMG Health's ValueDriver 2011 ASC Survey. ccording to an American Medical Association survey, the percentage of physicians who were practice owners decreased only 8 percentage points from 2007/2008 to 2012. The report shows hospital employment has increased, but 60 percent of physicians continue to work in practices wholly-owned by physicians. How is offering price determined? • Risk adjusted multiple of EBITDA: 41 percent "To paraphrase Mark Twain, the reports of the death of private practice medicine have been greatly exaggerated," said AMA President Ardis Dee Hoven, MD, in an organization news release. "Needed innovation in payment and delivery reform must recognize the wide range of practice types and sizes that exist today so all physicians can participate in the move to a more patient-centered system that rewards highquality care and reduces costs." • Discounted cash flow analysis: 26 percent • Third party fair market value opinion: 26 percent • Standard multiple of EBITDA: 7 percent How often do ASC management and development companies adjust offering price after further due diligence? The report went on to demonstrate that last year 29 percent of physicians reported working directly for a hospital or a practice partially owned by the hospital. Five years earlier, the report found 16.3 percent of physicians worked in one of those settings. • Rarely: 59 percent Additionally, the survey reported 18 percent of physicians were in solo practice last year, which was down 6 percentage points over the past five years. Single specialty practices were the most common practice type in 2012, accounting for 45.5 percent of physicians. n • Often: 35 percent • Never: 6 percent n ASC Review HalfPage Chef v Surgeon Ad-rev:Layout 1 10/20/2011 1:21 PM Page 1 Both are experts with sharp instruments... One is focused exclusively on healthcare. HealthCare Appraisers provides a full spectrum of valuation services and Fair Market Value ("FMV") solutions exclusively for the healthcare industry: Business Valuation • ASCs • Specialty Hospitals • Long-Term Acute Care Hospitals • Physician Practices • Imaging Centers • Dialysis Centers • Radiation Oncology Centers • CON & Other Intangible Assets • Fixed Asset Appraisals • Valuation for Financial Reporting Many consulting firms offer FMV analysis... We are focused exclusively on healthcare. Experts in Healthcare FMV www.HealthCareAppraisers.com | info@hcfmv.com | (561) 330-3488 Delray Beach | Denver | Dallas | Chicago | Philadelphia Compensation & Service Arrangements Consulting & Advisory Services Litigation Support