Bridging Business & Healthcare : Healthcare Management Consultants for Dispute Resolution, Valuation & Clinical Compliance

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We are  frequently asked to value ASCs and comment on “typical” multiples of EBITDA for ASC transactions. As those in the industry know, the value of an ASC is highly dependent on the procedure mix, with some procedures much more lucrative than others. This variability makes quoting a “typical” multiple of EBITDA tricky and a somewhat dangerous proposition.

An interesting article on the Becker’s ASC Review website discusses multiples in three different tiers, based on the risk characteristics of the ASC.

While I would be hesitant to quote a specific multiple of EBITDA based on the Becker guidance,  I believe it does provide an interesting framework to see where your specific ASC might fall. In the final analysis, three primary factors drive the value in the ASC setting:

1. Procedure mix
2. Payor mix and managed care contracting leverage
3. Medical supply expense management.

If you perform well in these three areas, you can expect your ASC to sell at multiples at the higher end of the ranges expressed in the Becker article.