New CMS rules impact healthcare valuations

BVWireIssue #219-1
December 2, 2020

physician compensation, healthcare, healthcare appraisal, healthcare compensation

The Centers for Medicare & Medicaid Services (CMS) has released a final rule that modernizes and clarifies the regulations that implemented the Medicare physician self-referral statute (the Stark Law). The new rule, effective Jan. 19, 2021, is designed to make it easier for hospitals and physicians to maintain compliance with the statute in the era of value-based care. The rules impact healthcare valuations and include guidance on how to determine whether the compensation being given to physicians is at fair market value. Tim Smith (TS Healthcare Consulting LLC) and Mark Dietrich (Mark O. Dietrich CPA, PC), who gave input to CMS during the development of the rules, will conduct a BVR webinar to discuss their impact on healthcare valuation—a date will be announced soon!

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