Valuing Rural Healthcare Clinics
Rural health clinics (RHCs) are specially certified entities that were created to increase access to primary care services for patients located in rural communities. Demand for rural health services is expected to increase in the coming years due to the aging baby boomer population and its status as potential acquisition targets by nonprofit healthcare organizations seeking to meet their charitable mission. The number of transactions involving RHCs is expected to increase, creating an opportunity for ...
Healthcare M&A activity in 4Q19, per Levin reports
Several recent reports from Irving Levin & Associates examined healthcare M&A activity in various sectors for the fourth quarter of 2019 versus the third quarter.
Navigating Healthcare’s New Path: Valuing Care Coordination and Alternate Care Delivery Models
Care coordination and alternate care delivery models are more present than ever in healthcare. Care coordination involves deliberately organizing patient care activities and sharing information among all of the participants concerned with a patient's care to achieve safer and more effective care. Valuing these companies involves understanding the healthcare model, and the rules and pending regulations that may impact value. Join Jason Ruchaber for the rules, methods and examples you need to have to coordinate ...
Reconciling FMV with Investment Value: What’s Up with the Proposed Redefinition of FMV by Healthcare Regulators?
In October, the Centers for Medicare and Medicaid Services (CMS) released its newly proposed updates to the Stark regulations that included an overhaul of the definition of fair market value (FMV) for regulatory compliance purposes. Surprisingly, CMS pointed to a whole new framework for FMV and valuation practice in general. To help practitioners prepare for the new paradigm, Tim Smith will do a deep dive into the proposed redefinition of FMV and how CMS now ...
Business Valuation Update Yearbook, 2020 Edition
January 2020 PDF
BVR (editor)
Business Valuation Resources, LLC
Regulatory Considerations Affecting Tax-Exempt Healthcare Entities
In addition to IRS and taxation considerations, tax-exempt healthcare entities must comply with the same federal and state regulations regarding the transfer of property or services as for-profit entities. Outlined in The BVR/AHLA Guide to Healthcare Industry Finance and Valuation, 4th edition, the chapter author Robert F. Reilly, MBA, CPA/ABV/CFF, provides a brief overview of some of the regulatory considerations that a valuation analyst should be aware of in property or services transfer transactions.
Healthcare Valuation Legal Check Up: Top Issues, Cases, and Hot Topics
Regulatory scrutiny of health care arrangements and fair market value is at an all-time high. In this webinar Joe Wolfe will discuss top issues, cases and hot topics in health care valuation from an attorney’s perspective. The webinar will cover key regulatory requirements (Stark, Anti-Kickback, tax exemption), enforcement trends, developing best practices for structuring appraisal engagements and potential pitfalls in reviewing and drafting written FMV opinions. Joe Wolfe will also discuss recent government guidance on ...
A Script for Pharmacy Valuation
The U.S. healthcare industry is very large, complex, and changing rapidly. This highly regulated industry is also a significant user of valuation services, primarily to support transactions, contracting, and internal strategic planning purposes. The importance of consummating transactions within fair market value cannot be overstated, as the alternative can result in substantial financial consequences to the parties involved. As such, advisors need to know the operational and valuation issues associated with healthcare entities so they ...
Top questions valuators should be prepared to answer when valuing a healthcare business
In BVR’s recent webinar, The Devil in the Valuation Details: Top 10 Questions Lawyers and Healthcare Organizations Ask, experts Jessica Stack and Denise Palencik (both of Veralon) covered the top 10 questions that valuation analysts should be prepared to answer when valuing a healthcare business. Here, we summarize five of the questions and answers.
The Due Diligence Imperative in the Era of Value-Based Reimbursement
With the emergence of value-based reimbursement, such as accountable care organizations (ACOs), clinically integrated networks (CINs), and bundled payment models, which rely on achieving the “Triple Aim” of healthcare at lower cost, U.S. hospitals and other service providers are increasingly looking to change how services are being delivered by seeking more collaborative relationships with physicians. The rise of these emerging healthcare organizations (EHOs) to address value-based reimbursement initiatives has led to a growing number of ...
ASC benchmarking study released
The median EBITDA margin for an ambulatory surgery center (ASC) is 20%, according to the “2019 ASC Benchmarking Survey” from HealthCare Appraisers Inc.
The Devil in the Valuation Details: Top 10 Questions Lawyers and Healthcare Organizations Ask
© 2019 Business Valuation Resources, LLC. All Rights Reserved. July 31, 2019 Webinar Handbook The Devil in the Valuation Details: Top 10 Questions Lawyers and Healthcare Organizations Ask Part of BVR’s Special Series presented by the BVR/AHLA Guide to Healthcare Industry Finance and Valuation Featuring: Denise Palencik, CVA, Veralon Jessica Stack, MBA, Veralon The Devil in the Valuation Details: Top 10 Questions Lawyers and Healthcare Organizations Ask Please note: This Handbook does not qualify for ...
Key challenges facing hospitals and what you need to know before valuing them
Hospital valuations require a thorough understanding of the industry and, specifically, the challenges and opportunities related to the Affordable Care Act (ACA) and overall transformation within the healthcare industry. In BVR’s publication, Guide to Ancillary Healthcare Services Valuation, contributors G. Don Barbo and Robert M. Mundy cover some of the top challenges hospitals face and how these challenges have changed the way hospitals conduct business.
When the marriage is over, what is the physician practice worth?
When a physician gets divorced, the value of his or her ownership interest in the practice is often included as an asset for property distribution purposes. In the BVR/AHLA Guide to Healthcare Industry Finance and Valuation, contributing author Stacey D. Udell dives into how the value of a physician practice is based on the valuator’s informed judgment applied to the specific facts and circumstances.
New edition of ASC valuation survey released
Valuation multiples for controlling interests in ambulatory service centers (ASCs) are increasing, according to the “2019 ASC Valuation Survey” from HealthCare Appraisers Inc.
How the Healthcare Industry Misuses and Abuses Survey Data
Compensation survey data do not provide a complete and precise depiction of the physician marketplace for any physician deal. The authors debunk the current “survey says” paradigm and provide the foundation for a completely new standard for the fair market value of physician clinical compensation.
With Great Value Comes Great Responsibility: Valuing Physician Compensation
The U.S. healthcare industry is very large, complex, and changing rapidly. This highly regulated industry is also a significant user of valuation services. “Fair market value” opinions are commonly requested in connection with various physician compensation arrangements, and failure to consummate transactions at fair market value can result in substantial financial consequences. As such, healthcare advisors need to know the valuation and compliance issues associated with various physician compensation arrangements so they can drive value ...
Series of articles examines physician practice losses
Regulatory as well as financial concerns are driving the need to address the issue of health systems losing money on acquired physician practices.
Senior healthcare M&A soars
Rising interest rates have not affected the market for seniors housing and care assets and demand remains extremely high across all quality and property types, according to new acquisition data from Irving Levin Associates (Norwalk, Conn.).
Retail, Urgent Care, Micro Hospitals and Beyond: Alternative Care Settings and Valuation
Alternative care access points—retail clinics, urgent care centers, freestanding emergency departments, and micro hospitals—have proliferated. In many cases, these programs are thriving in a consumer-focused, value‐based healthcare environment. Hospitals and health systems are recognizing the potential value of developing and integrating these alternative care sites. In addition to supporting population health management, these access points can be profitable and can provide a relatively low‐cost approach to new patient acquisition and the potential for downstream revenue.
Technology impacts valuations of dialysis centers
The latest article in a series that examines the valuation of dialysis centers focuses on the technological environment in which these enterprises operate.
Physician Distribution, Mobility, Fair Market Value, and Compensation Surveys
An analysis of regional differences in physician compensation coupled with the general tendency against long-distance relocation shows there is no national market for established physicians. Rather, local market conditions must be considered in setting fair market value.
7 Tips for Valuing—and Designing—Buy-In and Buyout Agreements for Medical/Dental Practices
Healthcare valuation expert Mark Dietrich, who has more than 40 years of experience designing and valuing buy-in and buyout agreements, recently wrote an article for the Business Valuation Update identifying a number of best practices for both valuation analysts and consultants with respect to these matters.
Mastering the Nuances of Healthcare Valuation Engagements
Valuation is part art and part science, but there is always a risk that some of the art may be lost or not understood. One of the more routine engagements an appraiser or valuation analyst may encounter is to value a practice for a buyout, whether it be due to an expected retirement, death or disability, or a buy-in. Such an engagement can be significantly more complex than appears on the surface. Join Mark Dietrich ...
Business Valuation Update Yearbook, 2019 Edition
February 2019 PDF
BVR (editor)
Business Valuation Resources, LLC