Get creative if cost for services is a concern, Prives says. “For example, a smaller ASC could jointly engage an investment banker with a neighboring ASC to help cut down the cost of the banker marketing the ASCs to potential buyers.”
If selling your ASC is not on the immediate horizon but something you are considering for several years down the road, Knight says there are longer term projects that can help better position your ASC. “Work to diversify your revenue by adding physicians, procedures and even specialties. If you have just a few physicians focusing on a specific specialty and performing a limited amount of procedures, that is going to negatively affect your ASC’s appeal and its valuation.”
Start monitoring your financial performance and the drivers of that performance more closely, Long says. “Knowing your business is key. Your shareholders and upper level management should have a good sense of the performance of your center— as opposed to just performing cases and turning out volume—so they can be effectively engaged in bringing about improvements.”
Weigh whether your ASC should work to better balance its payer mix, Knight says. “Understand your ASC’s breakdown of in-network versus out-of-network reimbursement from payers. Most buyers looking to get into this market have a perceived higher risk from an ASC that is more out-of-network than in-network. Making sure you are not too heavily involved in one or the other could be beneficial.”
Finally, always keep an eye on the future as much as the present, Prives says. “You want to know your historical revenue and understand your potential revenue. Buyers will look at both figures and where they fall will be key in helping ensure your ASC receives offers worth considering.”.