Buying equity in Ambulatory Surgical Center (ASC)?

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financial.freedom
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Joined: Fri Oct 03, 2014 1:18 am

Buying equity in Ambulatory Surgical Center (ASC)?

Post by financial.freedom »

My medical group has a meeting for potential buy-in to an ASC (vascular center). The reason for the buy-in is that they need specialists to do cases at the center, and we have a few who can do cases there. In return for contracting with us do to procedures at the center, we would have the opportunity to buy equity in the center to have some 'skin in the game.'

I'll update this thread once I have details after the meeting tomorrow, but wanted to know which questions to ask at the meeting. This is what I'm thinking so far:

1. How many centers (ASCs) are managed by the company? What is the breakdown for those centers in terms of corporate vs. % physician ownership?

2. What is the multiple of EBITDA for buy-in and expected ROI?

3. What is the liability (downside risk) for each investor?

Please let me know if any BHs have insight on this matter. I did invest in an imaging center that sold to private equity and ended up being a great investment. However, ASC is something new to me and may carry more risk. I wouldn't put more than 5% of portfolio into the investment, unless the numbers are solid maybe 8%.
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