RE:RE:Galloping higherRyba975 wrote:
In my notes I have a reference to the entire market being 800 ASC's with service of 43 currently, does anybody have a confirmed reference to this? thanks
I have a CRH institutional investor presentation (prepared by the company in Aug/2017) which references the following:
"Large and fragmented industry with 800-1,000 GI ASCs serviced by many small anesthesia groups (1 to 3 ASCs each on average)" also here's an excerpt from Beacon Securities initiating coverage report from 2015:
"While our research has not uncovered a definitive number of anesthesia companies servicing the endoscopy market, we believe it is a highly fragmented market with over 2,000 participants. We arrive at this estimate based on a mosaic theory:
a) According to Becker’s ASC Review (an industry group), the majority of anesthesiologists organize themselves in “independent group practices” and bill per service whoever needs their services;
b) The US Bureau of Labor Statistics estimates there are 30,000 anesthesiologists. Of those, the USLS estimates 25,000 work in “offices of physicians”, as highlighted in (a);
c) GAA employs ~30 anesthetists. If all firms were a similar size as GAA, this would imply 1,000 such firms in the United States. However, management has indicated that GAA is one of the larger firms in the country. Consequently, if we assume 10 anesthetists per company, that would imply 2,500 companies;
d) GAA services 9 ambulatory service centres (ASC). Industry sources indicate there are ~6,000 ASC’s in the United States. Therefore, if every anesthesia company services a like number of facilities, that would imply 700 companies. Again, given management has indicated that GAA is one of the larger players, if we assume the average company services 4 clinics, this would indicate there could be 1,500 such companies.
The bottom line is that we believe there are many more companies such as GAA that CRH can acquire."