In employing physicians for administrative services, hospitals, long-term care facilities, pharmaceutical and device manufacturers, and other healthcare providers have established a payment structure that has recently been attracting increased regulatory activity. As with many facets of physician compensation, though, these arrangements and their valuation confront a complex set of issues regarding legal, regulatory, and economic considerations. Each of these plays an important part in the valuation process, from methodology through standards of value. In Part 12 of BVR's Online Symposium on Healthcare Valuation, experts Andrea Ferrari and Tim Smith confront these head on, with a critical examination on physician administrative compensation.