BVR's Guide to Physician Practice Valuation, Third Edition

August 2016 Hardcover, PDF (876 pages)

Mark Dietrich

Business Valuation Resources, LLC

The landscape of the healthcare industry is dynamic and constantly evolving, especially in a time of healthcare reform. This is coupled with some major new and innovative thinking in the approach to healthcare valuation in a number of areas. BVR's Guide to Physician Practice Valuation, Third Edition is the essential resource for understanding the complexities inherent in physician practice valuation, whether for sale to a hospital, private equity firm, or to another physician. Edited by renowned healthcare valuation thought leader Mark Dietrich, CPA/ABV, with contributions from 21 of the top healthcare valuation experts and attorneys in the profession, this new guide provides healthcare administrators, appraisers, and attorneys with current and comprehensive "how-to" guidance on valuation approaches in this evolving industry.

Please note: To meet the needs of executives and practitioners interested exclusively in physician practice valuation, all physician practice content from the BVR/AHLA Guide to Healthcare Industry Finance and Valuation is republished in the Guide to Physician Practice Valuation – and includes online access to Mark Dietrich’s webinar “Valuation Techniques for a Physician Practice:  Getting it Right.”

Highlights of the guide include:

  • Comprehensive guidance from 21 of the top healthcare valuation experts and attorneys on the complex topic of physician practice valuation including:
    • The affect the Affordable Care Act has had on healthcare valuation generally
    • How the current market is affecting valuations
    • The best methods to value physician practices and physician compensation

  • New solutions to heavily debated topics in physician practice valuation—including a new ways to look at valuing compensation and intangible assets

  • The most current research so you can confidently and thoroughly conduct a valuation of a physician practice - the new edition includes:
    • 10 new chapters, with important updates to additional chapters
    • New material that tackles the debate over using the cost approach to value a trained workforce in healthcare
    • A new look at the value assigned to patient medical records
    • And much more!

Table of Contents:


Chapter 1. Five Years of Healthcare Reform
Chapter 2. Healthcare Market Structure and Its Implication for Valuation of Privately Held Provider Entities—An Empirical Analysis
Chapter 3. Factors in Estimating Cost of Capital and Forecasting Cash Flow in Healthcare
Chapter 4. Valuing Intangible Assets Under the Cost Approach: The Current State of the Body of Knowledge


Chapter 5. The Anti-Kickback Statute and Stark Law: Avoiding Valuation of Referrals
Chapter 6. The Volume or Value Standard: Navigating the Stark Law’s Prohibition on ‘Taking Into Account’ Designated Health Service Referrals
Chapter 7. The Imperative to Meeting the Stark Group Practice Definition
Chapter 8. Valuation Issues Affecting Tax-Exempt Healthcare Entities
Chapter 9. Patient Medical Records, HIPAA, and State Medical Records Law in Valuation and Litigation
Chapter 10. By the Numbers: A Case-Based Understanding of Healthcare Valuation Fraud
Chapter 11. Bradford Regional Medical Center: Lessons for the Inexperienced
Chapter 12. Converting Physician Practices to Tax-Exempt Status
Chapter 13. What Goes Around Comes Around: Derby v. Commissioner


Chapter 14. Choosing and Using the Right Valuation Methods for Physician Practices
Chapter 15. Using Work RVUs and ‘Particular Market’ Rates to Establish Fair Market Value Physician Compensation
Chapter 16. Evaluating RVU-Based Compensation Arrangements
Chapter 17. Reasonable Compensation for Physicians Under the Internal Revenue Code
Chapter 18. Assessing Intangible Value in a Physician Practice Acquisition
Chapter 19. Valuing Trained and Assembled Workforce in Healthcare Provider Entities Using the Cost Approach
Chapter 20. Examining the Valuation of Trained and Assembled Workforce Under a Liquidation Premise of Value
Chapter 21. Resolving the Debate About the Value of Physician Practices: A Comprehensive Analysis
Chapter 22. Critical Condition—A Coding Analysis for a Physician Practice Valuation
Chapter 23. Understanding and Using the Technical and Professional Components of Ancillary Revenue When Valuing Medical Practices
Chapter 24. Identifying and Measuring Personal Goodwill in a Professional Practice: Part I—Basic Concepts
Chapter 25. Identifying and Measuring Personal Goodwill in a Professional Practice: Part II—Using the Single Period Capitalization Model
Chapter 26. Valuation Solutions for Special Situations With Medical Practices
Chapter 27. Why Transaction Structure and Taxes Affect Value and Other Nuances of Valuing Medical Practices
Chapter 28. A Healthcare Appraiser Reviews a Judge-Appraiser’s ‘Report’
Chapter 29. The CPA’s Role in Mergers and Acquisitions Due Diligence Assistance to PPMCs and Private Equity Firms
Chapter 30. When the Marriage Is Over, What Is the Practice Worth?
Chapter 31. Jurisdictional Issues in Physician Practice Divorce Valuation: California (A Community Property State)