Surgery Center ROI Questions

[utdoc05]

I have been approached by a surgery center and the initial investment is around 180K. I will have to take out a loan. For an average profitable surgery center how many quarters is average to pay off the investment? Someone had mentioned 10 quarters to me but that doesnt make sense if a center has a ROI of 25% which would mean 4 years? Maybe I am thinking about that incorrectly. The center I am looking at had 40% ROI last year but out performed there expectations in their first year. I would estimate this year to be closer to 25%. Thanks!

[Zaphod]

utdoc05 wrote:

I have been approached by a surgery center and the initial investment is around 180K. I will have to take out a loan. For an average profitable surgery center how many quarters is average to pay off the investment? Someone had mentioned 10 quarters to me but that doesnt make sense if a center has a ROI of 25% which would mean 4 years? Maybe I am thinking about that incorrectly. The center I am looking at had 40% ROI last year but out performed there expectations in their first year. I would estimate this year to be closer to 25%. Thanks!

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Whats your exact dividend/income structure? Hard to say without knowing that, and only being one year you dont have a lot of history to go with. 25%, is very healthy no matter how you look at it.

[utdoc05]

I will need to get those exact structure details monday. It is a USPI center if that helps at all. Sorry for the lack of information this would be my first center and I am learning as I go. Thanks

[jfoxcpacfp]

Closed duplicate thread.