We here at BVR are putting together a special report on the revised definition of fair market value (FMV) for the Stark regulations. Part of this report will feature interpretations and assessments of the new regulations for valuation practices and analysis. To that end, BVR is seeking paper proposals for the following areas:

Topics for All Valuation Disciplines: BV, CV, M&E, and Real Estate

1. What are the implications for valuation practice of CMS’ finding that Congress intended the definition of Stark general market value to be consistent with “the concepts and principles of the valuation community”?
2. What is the valuation impact of CMS adding the phrase “of the subject transaction” to the various new regulatory definitions of fair market value (general, equipment rental, and the rental value of office space)?
3. How should CMS’ comment that fair market value is “buyer neutral” impact valuation analysis and practices of the healthcare valuation community?
4. CMS states that the agency is willing to accept “any commercially reasonable” valuation method for Stark FMV compliance purposes. What is a commercially reasonable valuation method? How does this standard relate to the valuation body of knowledge and generally accepted valuation principles and methods?
5. CMS reaffirmed that the definition of general market value precludes reliance on market data from parties in a position to refer or generate business for each other. How should this guidance be applied in Stark FMV valuation work?
6. What are the implications for valuation analysis and practices in light of CMS’ comments about practice losses in its discussion of both fair market value and commercial reasonableness?

Topics for Compensation Valuation

1. How should CMS’ comment about precluded reliance on market data from parties in a position to refer or generate business for each other affect the use of physician compensation survey data?
2. What valuation guidance can and/or should be taken from CMS’ three compensation examples involving survey data and FMV (orthopedic surgeon, family medicine doctor, and a cardiothoracic surgeon)?
3. What is the valuation impact of the new valuation date standard of “at the time the parties enter into the service arrangement” in the revised general market value definition for services?

If you are interested in submitting a paper for the special report, please respond by July 8 to tim@tshealthcon.com with a paper proposal. The proposal should include a description of the paper’s topic and the key points addressed, along with a short bio of the author(s). First drafts of the papers are due by August 10. There is no minimum or maximum word count for a submission, but papers will need to meet certain writing guidelines in order to be accepted for publication.