Becker's ASC Review

13 HEALTHCARE APPRAISERS, INCORPORATED Do you have a minimum annual management fee? 22b 35 % YES 65 % NO If "yes", what is the typical annual minimum management fee that you charge? 22c Do you have any ASC management arrangements wherein the management fee charges vary based on the revenue levels of the surgery center (i.e., do you use a sliding scale)? 23a 33 % YES 67 % NO < $100,000 $100,000 - $199,999 17 % 50 % 33 % $200,000 - $299,999 If you responded "yes" to 23a, at what threshold for annual ASC net revenues do management fees typically decrease? 23b $5,000,000 - $7,499,999 $7,500,000 - $9,999,999 67 % 17 % 17 % $10,000,000 - $12,499,999 *Does not total 100% due to rounding 10 2016 ASC VALUATION SURVEY RESULTS In the past year, what best describes the multiples paid (or considered) by your company? 14 In the past year, what best describes your observations in the ASC marketplace related to acquisition activity? 15 In the past year, what best describes your observations related to competition for acquisitions? 16 No change from previous year 33 % 11 % 56 % Decreasing Increasing Observed Acquisition Activity No Change From Previous Year Decreasing Increasing 26 % 63 % 11 % Observed Acquisition Competition No Change From Previous Year Decreasing Increasing 37 % 58 % 5 % 10 2016 ASC VALUATION SURVEY RESULTS In the past year, what best describes the multiples paid (or considered) by your company? 14 In the past year, what best describes your observations in the ASC marketplace related to acquisition activity? 15 In the past year, what best describes your observations related to competition for acquisitions? 16 No change from previous year 33 % 11 % 56 % Decreasing Increasing Observed Acquisition Activity No Change From Previous Year Decreasing Increasing 26 % 63 % 11 % Observed Acquisition Competition No Change From Previous Year Decreasing Increasing 37 % 58 % 5 % Becker's has chosen a select 8 pages from the survey to highlight. For more information, please visit http://bit.ly/1TvKmVO

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