Key Items to Consider About Ambulatory Surgery Center Buyers
Physician-owners of ambulatory surgery centers (ASCs) considering a sale should consider the following items when comparing potential buyers.
In most cases, ASC buyers will charge a management fee anywhere from 3% to 6% of net revenue. This fee is used to pay for management services to be provided by the buyer, but it should also be considered part of the negotiated transaction between buyer and seller. Certain management companies do not charge a management fee.
ASC buyers usually provide management services post-acquisition. This is part of the value they bring to physician sellers – the ability to cede management responsibility to a group with more resources and influence – freeing them to focus solely on patient care. Management services offered usually consist of:
Access to a Group Purchasing Organization
Benchmarking Based on Other Equity Owned Centers
Corporate Business Development
Corporate Revenue Cycle Oversight
Supply Chain Executive or Staff
Managed Care Contracting
Mock Accreditation Surveys
Oversight by Regional VP of Operations
Most ASC buyers offer billing services in some shape or form, and the ASCs they purchase may or may not be required to use them. This is a key consideration when selling your ASC, and the results of your current billing and collections should be carefully compared to what you would experience with potential buyers. Picking the right partner is critical in the long-term success of your partnership.
Buyers who do offer billing and collections services will typically charge between 3% to 6% of collections for those services.
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