Here are 10 statistics about management fees charged to ambulatory surgery centers by management companies, according to data from HealthCare Appraisers' 2010 ASC Valuation Survey. The survey was completed by 17 ASC companies representing more than 500 surgery centers throughout the country.
1. Minimum management fee companies charge, stated as a percentage of net revenue (based on the percent of respondents):
• 3 percent of net revenue: 6 percent
• 4 percent of net revenue: 22 percent
• 5 percent of net revenue: 43 percent
• 6 percent of net revenue: 17 percent
• 7 percent of net revenue: 6 percent
• Other: 6 percent
2. Fifty-nine percent of management companies said they charge flat annual minimum management fees. Forty-one percent said they do not.
3. General minimum management fee companies charge, based on percentage of respondents:
• Less than $75,000: 8 percent
• $75,001-$100,000: 31 percent
• $100,001-$125,000: 8 percent
• $125,001-$150,000: 8 percent
• More than $150,001: 31 percent
• Other: 14 percent
4. Maximum management fee companies charge, stated as a percentage of net revenue (based on percentage of respondents):
• 3 percent of net revenue: 6 percent
• 4 percent of net revenue: 0 percent
• 5 percent of net revenue: 6 percent
• 6 percent of net revenue: 44 percent
• 7 percent of net revenue: 16 percent
• Other: 28 percent
5. Eighty-nine percent of management companies said their maximum management fee does not include the provision of an administrator whose salary is paid by the company and not passed through to the center as an additional cost. Eleven percent of companies said their maximum management fee did include such an administrator.
6. Sixty percent of management companies vary their management fees based on revenue levels at the surgery center. Forty percent do not.
7. Fifty-three percent of management companies vary their fees based on the level of services provided. Forty-seven percent do not.
8. Seventy-three percent of management companies do not vary their management fees based on their level of equity ownership. Twenty-seven percent do.
9. Eighty-seven percent of companies said management fees are "sometimes" affected if the company manages a hospital department (versus a freestanding ASC). Thirteen percent said the fees are "never" affected and no respondents said the fees are "always" affected.
10. If managing a hospital department does affect management fees, 92 percent of companies said the impact depends on the level of services provided. Eight percent said the impact depends on the department's net revenue.
View the HealthCare Appraisers survey.
Related Articles on Surgery Center Statistics:
18 Statistics About OB/GYN in Ambulatory Surgery Centers
15 Statistics on Surgery Centers in the Southeast United States
10 Statistics on ASCs With More Than Four ORs
1. Minimum management fee companies charge, stated as a percentage of net revenue (based on the percent of respondents):
• 3 percent of net revenue: 6 percent
• 4 percent of net revenue: 22 percent
• 5 percent of net revenue: 43 percent
• 6 percent of net revenue: 17 percent
• 7 percent of net revenue: 6 percent
• Other: 6 percent
2. Fifty-nine percent of management companies said they charge flat annual minimum management fees. Forty-one percent said they do not.
3. General minimum management fee companies charge, based on percentage of respondents:
• Less than $75,000: 8 percent
• $75,001-$100,000: 31 percent
• $100,001-$125,000: 8 percent
• $125,001-$150,000: 8 percent
• More than $150,001: 31 percent
• Other: 14 percent
4. Maximum management fee companies charge, stated as a percentage of net revenue (based on percentage of respondents):
• 3 percent of net revenue: 6 percent
• 4 percent of net revenue: 0 percent
• 5 percent of net revenue: 6 percent
• 6 percent of net revenue: 44 percent
• 7 percent of net revenue: 16 percent
• Other: 28 percent
5. Eighty-nine percent of management companies said their maximum management fee does not include the provision of an administrator whose salary is paid by the company and not passed through to the center as an additional cost. Eleven percent of companies said their maximum management fee did include such an administrator.
6. Sixty percent of management companies vary their management fees based on revenue levels at the surgery center. Forty percent do not.
7. Fifty-three percent of management companies vary their fees based on the level of services provided. Forty-seven percent do not.
8. Seventy-three percent of management companies do not vary their management fees based on their level of equity ownership. Twenty-seven percent do.
9. Eighty-seven percent of companies said management fees are "sometimes" affected if the company manages a hospital department (versus a freestanding ASC). Thirteen percent said the fees are "never" affected and no respondents said the fees are "always" affected.
10. If managing a hospital department does affect management fees, 92 percent of companies said the impact depends on the level of services provided. Eight percent said the impact depends on the department's net revenue.
View the HealthCare Appraisers survey.
Related Articles on Surgery Center Statistics:
18 Statistics About OB/GYN in Ambulatory Surgery Centers
15 Statistics on Surgery Centers in the Southeast United States
10 Statistics on ASCs With More Than Four ORs