Application Research Of Discounted Cash Flow In Valuation Of Hospital Mergers And Acquisitions

With the deepening of China's medical reform,hospital mergers and acquisitions have become an important way for social capital to enter the medical service industry.The hospital M&A model is basically the same as the M&A model.However,due to the industry specificity of hospital M&A,the proportion of tangible assets to total assets is low,and the actual value of intangible assets is difficult to estimate.Compared with other traditional industries,there is no complete set.The system's value assessment program.In order to find a reasonable method to evaluate the value of hospitals in hospital M&A integration,this paper combines the theoretical basis of value assessment with the actual economic conditions of the medical industry,macroeconomic policies,and the development of capital markets to select the medical service industry suitable for China.Value assessment method.And select the actual case for analysis.First of all,this paper explains the development history of the medical service industry,the current domestic policies,the current status of the industry under the market and the development prospects,and analyzes the cases in the mergers and acquisitions of private medical institutions in China.Secondly,it analyzes the applicability of the three valuation methods of cost method,market method and income method in Chinese hospitals,and evaluates its advantages and disadvantages.Combined with the characteristics of the medical industry,the discounted cash flow method is applied to the conclusion of hospital value evaluation,and an evaluation model suitable for hospitals is constructed.On the basis of the model,the paper analyzes the influence of bed number,operating income,number of middle and senior professional titles,owner's equity and GDP of the hospital in the assessment area.It is concluded that the hospital value is positively correlated with the number of hospital beds,operating income and the number of middle and senior professional titles.There is no obvious link between the owner's equity and the GDP of the hospital.Finally,this paper selects the representative case A medical group merger and acquisition Q hospital as an empirical analysis.Through historical financial data analysis,the future cash flow,discount rate,and ending price are measured.Restore the key process of the valuation of the target company using the discounted cash flow method in this merger,and introduce regional policies,coverage population,regionaleconomic situation,personnel quality,medical institution level,hospital nature,bed number in empirical analysis.And other internal and external factors.Through the results of the comparable transaction analysis model,Q Hospital objectively reflects its value through the cash flow discount method value assessment results,thus further verifying the rationality of free cash flow.Through the above research,it is found that the discounted cash flow method is indeed the most suitable and comprehensive method that can fully reflect the overall value of the medical service industry.However,when using this method,we should comprehensively understand its growth cycle,value drivers,and risk factors based on the actual situation of the hospital being evaluated,and at the same time assist with other valuation methods to obtain the most fair valuation results.