“Alignment, integration, and engagement of physicians is a key strategy for health systems seeking to create high-performance, high-quality, and high-efficiency organizations. One way physicians and hospitals are trying to achieve this common goal is through co-management arrangements,” writes Anne Shiramitaro (Health Capital Consultants).

Business appraisers can play a roll in this new model of emerging healthcare organizations because an acceptable compensation structure must be established. “In order to avoid regulatory or compliance complications, an independent valuation consultant should be engaged to provide a certified opinion that the co-management arrangement is both at fair market value, and commercially reasonable.  Appraisers can also assist the healthcare enterprises involved in defining the scope of the activities performed by the co-management company and extensively review the appropriateness of the metrics that determine reimbursement,” adds Shiramitaro.

For the complete article “Co-Management Arrangements – Aligning Physicians and Hospitals” click here.