FMV of Sub-Leased Office Space

In a recent enforcement action [https://www.justice.gov/usao-nj/pr/morris-county-sonography-company-enters-deferred-prosecution-agreement-agrees-pay-95000], a diagnostic testing company allegedly rented office space from a referring physician for an amount above FMV and was commercially unreasonable. The diagnostic testing business was purportedly occupying some office space in the physicians’ offices for a set number of weekly hours to perform diagnostic tests. The problem was […]

Behavioral Health

In Q2, M&A activity in the behavioral health space slowed down due to rising costs and staff shortages, leading to many behavioral health facilities closing down. For instance, Michigan-based Chelsea Hospital and Wisconsin-based Froedtert Health closed their behavioral health units. However, despite these challenges, there are some trends that could drive deal activity in the […]

Lab Sales Reps – FMV & CR

HVG has experienced an uptick in clients requesting a commercial reasonableness opinion on the compensation of laboratory sales representatives. Typically, this is in the context of a third-party “marketing company,” where an MSA is in place. As many of you know, the FMV MSO fee is most commonly calculated on a cost-plus markup basis. But what […]

Physician Practice Transaction Multiples

The trend in physician practice acquisitions continues. Hospitals and health systems continue to acquire physician practices to expand their networks and create integrated healthcare delivery systems. Private equity firms see potential in consolidating practices, achieving economies of scale, and optimizing operational efficiency. Private equity involvement can bring capital investment, management expertise, and resources to support […]

New Physician Compensation Trends

Physicians are facing various challenges, such as reimbursement pressures, longer hours, inflation, and high rates of work-related burnout. Medicare physician payment has seen a decline after two decades of flat payments and adjusted for inflation, and it has decreased by 22% from 2001 to 2021. These challenges are causing many medical professionals to reconsider their […]

FMV Of De Novo ASC Shares

The fair market value (FMV) of shares in a start-up ASC is almost always valued based on an asset approach. The cost approach to business valuation is a method used to determine the value of a business based on the cost required to recreate or replace its assets. This approach assumes that the value of […]

FMV of HCPs

Before you estimate the FMV compensation for a health care professional (HCP) who provides speaking, advisory or consulting services, its highly advisable to first rank each individual HCP into a particular tier. Not every HCP is going to qualify as a key opinion leader…