The new healthcare ACOs may have hidden valuation issues

BVWireIssue #108-2
September 21, 2011

Networks of various healthcare providers are increasingly creating accountable care organizations (ACOs) to provide better quality and more cost-effective care. At the same time, “some concerns are emerging about the structure of these organizations,” notes Kevin Cope (LarsonAllen) in his article, “Fair Market Value and Regulatory Considerations for the ACO Model.” Some of the fair market value issues that might apply to an ACO include:

  • Provider compensation
  • Capital investment and asset contribution
  • Shared savings and income distribution

“Properly determining provider compensation models, valuing asset contributions and income distribution policies, and complying with regulatory requirements will be important considerations in forming successful ACOs,” adds Cope.

Learn more about ACO’s this December 6th in Accountable Care Organizations: What Are They and What Do You Need to Value?, Part 12 of BVR’s Online Symposium on Healthcare Valuation, featuring Mark O. Dietrich and Carol Carden (Pershing Yoakley & Associates).

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