Recent News

Stay up to date with ASCs Inc. — from recent Strategic Partnering news and the current ASC/MOB Real Estate market conditions, to the most recent ASCs Inc. transactions and upcoming events.

Multi-specialty ASC real estate sells for $6,000,000, a CAP rate of 6.62%

November 20, 2017

J.H. WINOKUR, INC., of White Plains, New York, in association with ASCs Inc. of Valley Center, California, brokered the sale of the real estate of the Dublin Surgery Center, located in Dublin, Ohio.

The Dublin Surgery Center is a 14,416 square foot multi-specialty ambulatory surgery center with four operating rooms and two procedure rooms.  The Dublin Surgery Center physicians partnered with Surgical Care Affiliates, now part of UnitedHealth Group’s OptumCare, and signed a new 15-year lease.

The property was sold on behalf of the physician-owners to a real estate investment fund.  The transaction closed at a price of $6,000,000, representing a 6.62% CAP rate.

Do you own your ASC real estate?

ASCs Inc. helps physicians who own their ASC/MOB real estate to sell it at a premium price and leaseback with no change in rent.  Many physicians who own their ASC/MOB real estate don’t realize how much value their real estate represents. Physicians usually have significant capital locked up in real estate that could be deployed in higher yielding investments. There are a growing number of private investors and real estate investment companies that realize what great businesses ASCs have proven to be.  These buyers are offering premium prices to acquire ASC/MOB real estate. In every situation, each ASC/MOB property we offer for sale attracts multiple premium-priced offers within 30 days of being listed.

Our goal is to help physician-owners of ASC/MOB real estate to obtain maximum value and optimum terms for the sale and leaseback of their real estate, with long-term leases and no personal guarantees.

Click here to view a list of our recent ASC/MOB real estate transactions.  These transactions demonstrate the demand that exists for medical real estate when marketed by a firm with national buyers — local commercial realtors typically do not have access to these buyers.  We market to national buyers who compete to buy the properties we represent and we consequently obtain the highest possible prices for our clients.

When you want to sell your ASC real estate, call us at 760-751-0250 to discuss the process and how to obtain the highest possible value.

How to create a strategic partnership with a hospital

February 10, 2016

How to create a strategic partnership with a hospital
Written by Jonathan C. Vick, Founder and President, ASCs Inc | February 05, 2016
There can be significant benefits to having a hospital as a partner for a surgery center, as long as the terms of the partnership are beneficial for the surgery center. If the partnership is not beneficial a center may find that it has sold equity to a non-producing partner and this can prevent the physician-owners from achieving their long term goals.

It is advisable to have a plan on how the hospital will be brought in as a partner and specific expectations and goals in mind prior to initiating discussions with the hospital. Here are some thoughts on how to successfully bring in a hospital as a partner:

First of all when seeking a strategic partner it is usually politically important to include one or more hospitals in the negotiation. From a business perspective it can be very beneficial for an ASC to have a hospital partner if they will give you access to their contracts and if they will refer patients to your center. These are big “ifs” and need to be clearly negotiated as part of the deal, before the deal is signed. Usually only one hospital is included as a partner.
Secondly the hospital’s usual starting position is that they need to own 51% and they use the income method of valuation so they almost always give the center a lower value than the ASC management companies that use the market multiple of EBITDA method to value a center.
Thirdly, if the hospital ends up as a 51% owner, regardless of what they say, they will want to run the center like a hospital thus destroying the efficiencies and economies that have made your center successful in the first place.

So based on our experience our recommendation is to:
1. Include the hospitals in the negotiation so they feel they are part of the process
2. Seek partnership proposals from several ASC management companies that have models that include a hospital partner and that have a track record of negotiating successful 3-way deals with a hospital as a minority partner
3. Obtain partnership proposals from more than one ASC management company as they will offer more than the hospital so this establishes FMV for the center and creates competition to maximize the value
4. If it makes sense to have a hospital partner a 3-way deal can result in the best of all worlds: access to hospital contracts and referrals, a management company that knows how to profitably manage ASCs, the highest possible price, and a corporate partner that is oriented to maximize profits so that distributions will continue to increase.
5. Negotiate a deal first with the selected ASC management company, and then with your management company’s assistance and expertise negotiate bringing the hospital in as a partner if it provides specific benefits to the partnership.

Jonathan C. Vick, the founder and President of ASCs Inc., has advised on development, merger, strategic acquisition and real estate sales transactions for over 500 physician-owned ambulatory surgery (ASCs), endoscopy centers (ECs) and surgical hospitals since 1984. He has extensive experience in ASC and EC sales, development, business planning, operations, valuations, and strategic mergers & acquisitions. He can be reached at 760-751-0250 or at e-mail: More information can be obtained at website:


© Copyright ASC COMMUNICATIONS 2016.

What Do ASC Buyers Look for in Potential Acquisitions?

January 27, 2016

Jon Vick of ASCs Inc. gives a detailed picture of the ambulatory surgery center buyer’s market, what qualities buyers look for in potential ASC acquisitions and how ASC leaders can position their centers to attract the right buyers.

Question: Who are the primary buyers in the current ASC market? 
To find out the answer to this question, and more, click here.

Selling ASC Real Estate: 5 Things to Know for Flawless Transactions

January 22, 2016

Ambulatory surgery center physicians often own the ASC’s business and real estate. “Over the last year the stars have aligned so that owners of ASC/medical office building real estate can now sell at a very attractive price, get cash for their real estate, lease back the ASC at market rate rent and realize significant tax advantages,” says Jonathan Vick, founder and president of ASCs Inc.

Mr. Vick explains why the current climate is favorable for real estate sale and the steps physician-owners can take to complete a smooth transaction.

Read more at Becker’s Hospital Review

What ASC Physician-Owners Need to Know About ASC Real Estate Sales & Leasebacks

January 20, 2016

Oftentimes ambulatory surgery center physicians own not only their center, but its real estate as well. Jonathan Vick, founder and president of ASCs Inc., answers questions on successfully selling ASC real estate and obtaining favorable leases for the buildings.

Question: When does it make sense for ASC physicians to consider a lease back transaction for their center?
To find out the answer to this question, and more, click here.

4 smartest things ASC owners do today: Preparing for sale

January 18, 2016

When physicians decide to open an ASC, business success is top of mind. Conducting present business in a way that maximizes future business, however, is a priority that can escape those who are not extremely planful. Here are four of the smartest things ASC owners can do today to maximize future gains from the sale or transfer of various parts of their business.

Read more at Becker’s ASC Review

ASCs Inc. markets your surgery center to the right buyers

January 15, 2016

Most surgery center owners want the highest price for their surgery center and a corporate partner that will grow the business and its profits. Whether you are selling a minority or majority interest, you want to sell to a partner with a track record of success that places a high value on your surgery center.

With over 30 surgery center companies interested in investing in surgery centers, selecting the right buyers makes all the difference between an average price and a premium price. By selecting the right prospective buyer, sellers will realize a higher selling price and a partner that increases profits and distributions. ASCs Inc. advises and assists surgery center owners so that their center is professionally marketed to leading surgery center companies that are looking for specific types of centers. ASCs Inc. helps surgery center owners maximize the selling price by recognizing and valuing all of the profits and assets of a center, creating a competitive environment, and marketing the surgery center to the buyers that want to invest in your type of center.

What is “ASC strategic partnering” and how will it benefit you and your partners?

January 13, 2016

ASC Strategic Partnering is when you form a partnership with an entity that can help your center grow, become more profitable, and increase the value of the center and the distributions to the partners. ASC management companies almost always value ASCs higher than hospitals do but having a hospital partner can provide other strategic benefits.

A strategic partner brings more than money to the table. While ASCs Inc.’s goal is to obtain the highest possible values for our clients, in most cases money is not the seller’s only goal. Since buyers almost always want the sellers to retain a significant (usually 49% or greater) interest in the ASC, it is in the seller’s best interest to partner with an ASC management company and/or hospital that will improve the cash flow and value of the ASC.

From a strategic perspective the best partners are ASC management companies that can bring recruiting, contracting, case costing analysis, billing and collection and purchasing expertise to the table. Each of these skills can help your center improve its business and generate increased profits and distributions. In many cases, a hospital that is willing to provide access to its hospital contracts can be a strategic partner, but this is a relationship that must be carefully managed. This is why a 3-way deal between the ASC, a management company and a local hospital can be a very practical and workable strategic alliance, especially as Accountable Care Organizations (ACOs) are becoming dominant and insurance companies are “steering” patients to the low-cost providers. We call it “the best of both worlds” alliance – ASC management expertise and access to better paying contracts, in an environment that places high value on the ASC as the high quality, low cost provider.

Partnerships with private equity firms that are “rolling up” groups of ASCs for resale are usually not “strategic”. Private equity roll-ups, or leveraged buy-outs, are engineered by investment firms to buy a group of ASCs and then sell them at a profit to a higher bidder. These are not strategic as the private equity buyers tend to know little about the ASC business and don’t bring expertise that will help your business grow. Thus ASCs Inc. recommends partnering with an ASC management company and/or a hospital in a strategic partnership that results in tangible, valuable benefits for the ASC physician-partners.

There are currently over 20 ASC management companies seeking ASC acquisitions. Prices being offered by the ASC management companies are the highest they have ever been, as ASCs with good growth opportunities are becoming harder to find. Based on your situation and goals, ASCs Inc. will help you find the best strategic partner and obtain the highest value for your center, as we have for over 500 centers since 1984. ASCs Inc.’s proven competitive bidding process results in a choice of strategic partners and higher purchase prices for physician-owners of ASCs.

For a copy of the annual ASC Valuation Survey, or for more information e-mail or call ASCs Inc. at 760-751-0250.