About the Business of Healthcare Araliya Valuation Consulting (AVC), based in Tampa, FL, surveyed over 1,000 physician business owners to find out their perspective on the current healthcare environment, in a business context. AVC team surveyed several medical specialists, including: dentists, ophthalmologists, psychiatrists and psychologists, family medicine practitioners, chiropractors, podiatrists, physical medicine and rehabilitation providers, pediatrics, orthopedic surgeons, and internal medicine providers, among other disciplines. This article summarizes the survey results. Araliya Valuation Consulting (AVC), based in Tampa, FL, surveyed over 1,000 physician business owners to find out their perspective on the current healthcare environment, in a business context. AVC…
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Medical Director Compensation This article is the fourth in a series involving current healthcare management issues. An in-depth article on this issue was published in The Value Examiner’s September/October 2017 issue. In that issue, the authors discuss issues setting forth medical director services and establishing defensible compensation arrangements.
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Deal Structuring and Workforce in Place Considerations Under IRC and Stark Law What complications arise when two separate transactions are used to structure an asset sale of a physician practice? The key to compliance is to hit a reasonable middle ground under somewhat competing frameworks, and carefully drafting, documenting, and reporting accordingly. Valuators play a key role not only in establishing and documenting the fair market value of the purchase price, but also the corresponding allocation of corporate versus personal goodwill, including how it relates to the intangible value of workforce in place (WIP).
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Valuators Take Note Fair market value is key to compliance with both the Stark Law and the Anti-Kickback Statue. Solid, well-reasoned valuations can be essential in establishing compliant arrangements, and these must consider practice losses as applicable. In this article, Lynn Gordon, Esq., states that it is “prudent to have a valuation in place that supports compensation as fair market value,” especially if the practice area incurs losses. Gordon adds this is especially important in “high-stakes transactions likely to draw attention (e.g., transactions with significant inpatient care reimbursement such as cardiology and orthopedic surgery).” Gordon advises, “valuator[s] should work together…
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A standard distinct from the fair market value standard The fair market value is distinct from the commercial reasonableness standard. The article highlights how these standards are applied in a healthcare transaction and why it is important to distinguish these standards.
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Compensation for PCPs is increasing The increasing supply shortage of primary care physicians (PCPs) will have a significant impact on physician compensation. In turn; this will have an equally powerful effect on the valuation of PCP practices.
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Value metrics and capital formation Robert Cimasi serves as chief executive officer of HEALTH CAPITAL CONSULTANTS (HCC). Mr. Cimasi’s firm is a nationally recognized healthcare financial and economic consulting agnecy headquartered in St. Louis, MO, serving clients in 49 states since 1993. He is author of a three-volume set that offers a comprehensive reference guide to the factors involved in consulting with and valuing healthcare practices. In this article, Mr. Wandtke reviews Volume Two, Professional Practices. See http://www.healthcapital.com/advisersguide.
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2013 California Filings: Aetna: 22 percent. Anthem Blue Cross: 26 percent. Blue Shield of California: 20 percent. Reed Abelson at the New York Times reported last week that health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers. More:
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Alternatives to Hospital Employment Include Solo ‘Micropractices,’ Patient-Centered Medical Homes, and Direct-to-Pay Practices Andy Robeznieks at Modern Physician reports that medical practice innovation—including the use of technology to increase efficiency and reduce overhead—is what “holds the key to private practice being a viable alternative to salaried employment,” according to a new report from the Physicians Foundation (PDF). The 70-page report, titled The Future of Medical Practice: Creating Options for Practicing Physicians to Control Their Professional Destiny, was written by Jeff Goldsmith, associate professor of public health sciences at the University of Virginia, who was No. 77 on Modern Healthcare’s 100 Most Powerful People…