Do you want to sell the Anesthesia Component of Your Practice?
An interesting new market of physician practice acquisition is developing. GI Anesthesia groups which hold long term contracts with Gastroenterology ASC’s as well as ASC owned Anesthesia practices are starting to be purchased by a couple of large companies. The multiples are great and this is definitely a sellers market— for now…….
Why would one do this? Reimbursements are declining and threatening to go down or become bundled. Compliance is becoming more difficult. As practicing your primary field becomes more complicated, are you really still able to properly balance other business endeavors? This is why GI Anesthesia reimbursement by gastroenterologists tends to be 25-30% less than what dedicated providers can do.
What is the advantage for the acquirer? Balancing reimbursement and compliance risk/burden is their expertise. CRH, for example, made a recent purchase of Gastroenterology Anesthesia Associates, LLC with a maximum total purchase price of maximum total purchase price assuming achievement of all performance measures is US$73.2 million. They followed this purchase with two smaller ones in March 2015. As CRH States in the press release, “CRH believes this new platform has the potential to not only grow revenues via future accretive acquisitions but also through organic growth of the acquired business.”
Considering a purchase of your GI Anesthesia practice? Its gives you the ability to cash out now and avoid future risks. It allows you to find a stable partner for Anesthesia service management so that you can focus on growing your GI practice. The acquirer can use its superior management skills to get better reimbursement and reduce anesthesia billing, compliance and collections costs. A practice with growing volumes may even be given a premium valuation with the right negotiating support. A recent group, for example, was offered a multiple of 6 based on growing volumes and practice improvements! That’s why you need the advice and support of AnesthesiaStat Consulting to help. Visit us at anesthesiastat.com for more information or email me at firstname.lastname@example.org.