Get Out of the Herd So You Don’t Run Off a Cliff: The New FMV Paradigm for Physician Clinical Compensation

BVResearch Pro
Training Event Transcripts
January 24, 2018
Mark O. Dietrich, CPA/ABV
Timothy R. Smith, CPA/ABV
healthcare

Summary

Mark Dietrich and Tim Smith, co-editors of the just-released BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements, offer a framework for a new approach to FMV for physician clinical services based on hundreds of hours of research, modeling, and writing. Examine and deconstruct the purported governmental mandate for using the “survey says” paradigm for FMV purposes, including a data-driven and evidence-based rebuttal of the government’s FMV theory in the Tuomey and Halifax cases including discussion that will entail a review of regulatory language, court testimony, and enforcement trends. Hear new research on physician mobility trends and regional and state representation in published physician compensation survey data and the implications of this research for determining the FMV of physician clinical compensation. In response to the collapse of the “survey says” paradigm, attendees will get an introduction to the new market approach based on the RBRVS method. Learn the appropriate use of the independent investor test for physician compensation, a well-established concept for compensation valuation supported by tax law and business valuation. Together, these two methods replace “survey says” with a valuation framework that is far more defensible and valid, while resolving common issues regarding “stacking” of compensation elements, practice losses, and the move to value-based payments.
The New FMV Paradigm for Physician Clinical Compensation
PDF, Size: 1,270 KB