Medscape and Physicians Thrive have recently issued their 2021 Physician Compensation Report. Here are a few highlights: Most physicians experienced an increase in their income in 2021.  On average, PCPs earned $260K and specialists earned $368K.All specialties experienced an increase in income.Since 2015, physician compensation has increased by 29% overall and 33% for primary care physicians.In Q4 of 2021 physician recruitment engagements hit an all-time high.The income gap between men and women physicians has remained constant. Male PCPs earned 25% more than female PCPs.Oncologists and plastic surgeons experienced the highest increase in salaries at 7% and 10%, … [Read more...]

Based on our latest transaction data research, specialty pharmacies seem to be more valuable than traditional retail pharmacies. Here is HVG’s latest industry report: Market Size and Forecast The U.S. pharmacy market was valued at $534.21 billion in 2020. The market is projected to grow at a CAGR of 6.3% from $560 billion in 2021 to $861.67 billion by 2028. The impact of COVID-19 has been unprecedented, with the industry witnessing a positive impact on demand across the U.S. amid the pandemic.[1] Source: Fortune Business Insights According to a report by Fortune Business Insights, “Increase in prevalence of diseases in the U.S., aging population, and increasing healthcare … [Read more...]

A professional service agreement (“PSA”) is generally defined as a financial relationship between a physician practice and a hospital in which the physician practice remains an autonomous entity but the physicians are compensated by the hospital at fair market value compensation for their professional services.  In many cases, the physician group provides substantially all of the specific/specialty clinical services demanded by the community.Since the hospital is required to pay the physician group an FMV rate for their services, the need for an independent FMV opinion is quite common. But, the valuation analysis of these, sometimes complex, arrangements is not easy or … [Read more...]

On April 11, 2022, the DOJ announced that it had intervened in an ongoing qui tam suit against a number of health system-owned cancer centers and a series of MSAs in place with a local physician group.  The DOJ basically alleges that the health system paid the physician group for management services under a bona fide MSA, but that many of the management services were not actually provided. Although the health system obtained numerous third-party FMV opinions from several different appraisal firms, the litigation continues. Allegedly there was no documentation or exhibits that set forth the duties and responsibilities of the numerous medical directors. Plus, the hospital never … [Read more...]

Market Size and Forecast The US pharmacy market was valued at $534.21 billion in 2020. The market is projected to grow at a CAGR of 6.3% from $560 billion in 2021 to $861.67 billion by 2028. The impact of COVID-19 has been unprecedented with the industry witnessing a positive impact on demand across the US amid the pandemic.[1] Source: Fortune Business Insights According to a report by Fortune Business Insights, “Increase in prevalence of diseases in the US, aging population, and increasing healthcare expenditures are some of the major factors driving the growth of the industry. The increasing number of prescription drugs being introduced in the market, along with the rising … [Read more...]

When an appraiser develops an FMV opinion of the value of a clinic study, there are generally 3 main elements: Use of clinical staffUse of facility overheadUse of supplies The appraiser can develop an FMV hourly rate for each level of medical staff/personnel.  And the appraiser can estimate an appropriate overhead rate for the use of a facility and the supplies to be used. But, the difficult and risky part is estimating a reasonable amount of time it should take to complete a particular stage/level/task within the protocols of the clinical study.  Plus, it must be determined which level of medical staff is most appropriate to carry out a particular task of the clinical study.  Even a … [Read more...]

I found this to be an interesting ruling. In the case of United States ex rel. Chao v. Medtronic PLC, No. 17-cv-1903 (C.D. Cal.), the court said: “even some fair-market-value payments will qualify as illegal kickbacks”. As such, the Central District of California denied the defendant’s motion to dismiss a qui tam suit premised on alleged Anti-Kickback Statute (“AKS”) violations. I’m not sure how this is. If a payment to a referral source is FMV, then it really comes down to whether the payment was even necessary.  Doesn’t this touch on commercial reasonableness? The relator alleged that defendants (Medtronic) made offers or payments with at least one purpose to induce referrals … [Read more...]

In November of 2020, the OIG issued a special fraud alert on speaker programs for life sciences companies.  In light of this heightened level of compliance and awareness, HVG has developed an FMV tool that helps companies select an appropriate specialist based on a number of qualifications/criteria and the compliant FMV compensation pay range.  HVG’s Physician Experience Matrix is a tool that clients can use to identify an HCP’s experience and qualifications which ultimately places the HCP speaker/consultant into one of 4 tiers: 1.       Staff Physician2.       Experienced Physician3.       Highly Experienced Specialist4.       Renowned Specialist/KOL The life sciences company will identify … [Read more...]

The dermatology space comprises practices that are mainly involved in the medical treatment of skin for disorders such as acne, skin cancer, psoriasis, eczema, cold sores, dry skin, psoriasis, vitiligo, contact dermatitis, rosacea, melasma, and warts. Dermatology practices also perform cosmetic procedures such as facials, skin rejuvenation, Mohs surgery, and dermatopathology. According to the American Association of Medical Colleges (AAMC), as of 2019, there were about 12,516 dermatologists in the US, of which 11,747 were involved in providing patient care1. As per a report by IBISWorld, there were 5,513 dermatologists’ businesses in the US as of 20222. Dermatologists work in group practices … [Read more...]