Knowledge Expansion

Value judgments: Considerations and pitfalls in medical directorship and call valuations

Insight Article

Benchmarking & Forecasting

Provider Compensation

Valuations normally happen with two goals in mind in a medical group practice:

  1. Valuing the business (Physician owners sometimes get divorced, after all.)
  2. Valuing services.

The reasons, however, are more a matter of compliance. Stark Law, the Medicare Anti-Kickback Statute and other federal regulations limit the types of business relationships into which physicians can enter and mandate a commercial reasonableness known as fair market value (FMV).

Differences in methodology that underpin valuation work can have a significant impact on a medical group practice’s costs as they relate to physician compensation. That’s where Timothy Smith, CPA, ABV, principal, TS Healthcare Consulting LLC, enters the picture.

Sign in to access this material

Member Login Become a Member
Loading...