Financial feasibility studies for ASCs

Financial Feasibility Studies for Ambulatory Surgery Centers

Ambulatory Strategies, Inc. specializes in conducting thorough financial feasibility studies for ambulatory surgery centers. Our goal is to provide a clear understanding of the financial potential and viability of your ASC project through data gathering, analysis, and projection.

Components of ASC Financial Analysis

Pro Forma Assumptions

Our process begins with the collection of Pro Forma assumptions. This involves gathering detailed data on projected case volumes, case mix, scheduling preferences, and expected reimbursement rates. We estimate the number of procedures based on patient demand and physician referrals. Data collection forms the foundation for accurate financial forecasting.

Market Indicated Service Rates

We then move to the analysis of market indicated service rates. By researching prevailing service rates for ASCs in your region, we consider various factors such as location, patient demographics, and the competitive landscape. Our findings help us establish realistic and competitive service rates that reflect the local market conditions and patient expectations.

Usage Rates

The next step involves analyzing usage rates. We assess how frequently the ASC’s operating rooms and facilities will be utilized, taking into account peak hours, days, and seasonal variations.

Expense Ratios

Expense ratios are another component of our financial feasibility studies. We calculate operational costs, including staff salaries, supplies, utilities, and facility maintenance. By determining fixed and variable expenses, we provide a clear picture of the ongoing costs associated with running the ASC.

Discounted Cash Flow Analysis

The discounted cash flow analysis (DCF) is an additional element we study. We assess the present value of future cash flows, applying a discount rate to account for the time value of money. This analysis provides a realistic valuation of your ASC project, helping you make smart investment decisions.

Internal Rate of Return (IRR) Analysis

Finally, we conduct an internal rate of return (IRR) analysis to evaluate the project’s profitability. By comparing the IRR to the cost of capital or desired return on investment, we get your ASC project on track to meeting your financial goals and expectations.

Get a Thorough Financial Feasibility Study with ASI

ASI’s approach to financial feasibility studies is methodical and detailed. We gather data on projected case volumes, reimbursement rates, and scheduling preferences to create accurate financial forecasts. By researching regional service rates and analyzing ASC utilization patterns, we establish competitive rates and improve the efficiency of your operation. We calculate operational costs, project financials over a 10-year span, and assess profitability through discounted cash flow and internal rate of return analyses. This approach ensures realistic and competitive financial planning for your ASC.