Operating Expense Analysis for Orthopedic-Driven ASCs

Orthopedic-driven ASCs (facilities with greater than 50 percent of their case volume in orthopedics) commit an average of 71.3 percent of their net revenue to operating expenses, according to VMG Health’s 2009 Intellimarker. Here is a breakdown of where orthopedic-driven ASCs spend their money.

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1. Medical and surgical costs — 22.7 percent

 

2. Employee salary and wages — 21.5 percent

 

3. Total general and administrative costs — 13.1 percent

  • Management fees: 5.5 percent
  • Bad debt: 1.7 percent
  • Other: 9.4 percent

 

4. Occupancy costs — 7.9 percent

 

5. Depreciation and Amortization — 6.0 percent

 

6. Taxes and benefits — 3.9 percent

 

7. Other medical costs — 2.2 percent

 

8. Insurance — 1.5 percent

 

Information comes from VMG Health’s Intellimarker benchmarking study. VMG Health is a leading valuation and transaction advisory firm in healthcare. To receive a complimentary copy of VMG Health’s 2009 Intellimarker, click here.

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

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