Randy Biernat shares physician/hospital contract valuation checklist


In last week’s BVR webinarValuing Management Services Contracts Between Physicians and Hospitals” Randy Biernat (Katz, Sapper & Miller) shared with listeners the checklist he uses when starting these types of valuation engagements:

  1. Determine FMV requirements
  2. Document jurisdictional exceptions to FMV
  3. Identify parties to agreement
  4. Document purpose of arrangement
  5. Identify method of compensation
  6. Consider and Select Valuation Methodology
  7. Evaluate transaction from management services company perspective
  8. Evaluate transaction from hospital perspective
  9. Reconcile FMV findings
  10. Provide conclusion of FMV range of compensation

Biernat and his colleagues document the first five points in the engagement letter and process points 6 -10 after they receive the information from the client. “The availability of information may limit the appraiser’s ability to complete each of the above steps,” he warns. “If we can’t assess some of these points we will work with counsel to identify those issues and come up with a reasonable course of action to account for information we can’t get access to.”  Biernat recognizes that appraisers frequently get bad data from hospitals and/or physicians.

The webinar training pack, filled with Biernat’s expertise on valuing physician management services contracts, will be available in June.

Categories