HealthCareAppraisers.com | 15
2 O 1 7 A S C V A L U A T I O N S U R V E Y
How does your company adjust valuation models/pricing
for out-of-network centers?
If applicable, what is the magnitude of the reduction to the
multiple for a center with an out-of-network strategy (i.e. the
center generally is not contracted with any commercial payors)?
What is the typical management fee rate your company
charges for ASCs (% of net revenue)?
19
2O
68%
5%
14%
Convert Revenue
to In-Network
Apply Higher Risk
Factor/Discount Rate
Adjust Multiples
Downward
5%
5%
Combination
Cannot Generalize
5%
Walk Away —
Too Much Risk
Out-of-Network Adjustment Approach
* Does not total 100% due to rounding.
* Does not total 100% due to rounding.
* Does not total 100% due to rounding.
7%
14%
21%
< 0.5 Multiple
0.51 - 1.5 Multiple
1.51 - 2.0 Multiple
57%
> 2.0 Multiple
Out-of-Network Multiple Adjustment
21A
10%
10%
24%
3%
4%
5%
43%
5%
6%
7%
10%
Other
Typical ASC Management Fee
