Five Hospital Value Drivers That Can Influence a Valuation
Many factors can influence the value of a hospital. It is imperative that a business appraiser undertaking these complex assignments is both mindful and understanding of the unique circumstances and nuances inherent in valuation within this industry in order to generate a sound opinion of value.
Using Government Data Sources to Revolutionize Healthcare Valuation
Believe it or not, the U.S. government does a few things right when it comes to the healthcare industry. One such area is providing a vast treasure trove of industry data that can be used in healthcare valuation, including both business and compensation valuation. As agencies such as CMS seek greater transparency in healthcare, the government is making all the data it collects through its reimbursement processes available for public use. Yet, many in the ...
Cost of Capital in Healthcare
Estimating cost of capital when valuing healthcare entities can be challenging due to (among other factors) the regulatory environment, the impact of changes in reimbursement, the size of the entities, the lack of guideline public companies, and other entity-specific risks. Kate Morris and Matt Warren will establish a logical framework for developing cost of capital in such entities within the context of the spectrum of market returns and the observed rates of return in capital ...
Key Points for Developing Compensation Valuation Report Content for a Healthcare Appraisal
No specific professional standards govern the content and requirements for appraisal reports in compensation valuation (CV), and there is very little professional literature on this topic. In the BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements, author Timothy Smith looks to the business valuation standards and discusses how to adapt and expand on these standards to address areas that are unique to CV practice and appraisal issues.
Alternative payment models in healthcare
A significant impact on the revenue picture for healthcare providers is coming from alternative payment models, such as value-based payments and bundled payments.
Home health and hospice M&A activity soars
For three quarters in a row, there have been at least 20 publicly announced acquisitions of home health or hospice companies, a much higher quarterly volume than during most of 2017, according to new data from HealthCareMandA.com (Irving Levin Associates).
Minimizing HIPAA Risk for Solo and Small-Firm Business Appraisers
Business appraisers working with healthcare organizations can face serious HIPAA-related risk. It is important that appraisers know why they may be at risk and understand how they can better protect their business from a HIPAA violation. Join Darcy Devine and HIPAA security specialist John Mamon for this webinar where they will focus on the knowledge that every business appraiser should have about HIPAA. Learn practical safeguards that solo and small-firm business appraisers can implement to ...
Home Hospice Companies: Top Trends and Value Drivers
Valuation experts faced with valuing a home hospice business may think it is similar to other home health service businesses, but, while there are similarities, some material differences can affect a valuation. In a recent BVR webinar, Hospice Valuation: Trends, Value Drivers and Physician Compensation, experts Darcy Devine and William Hamilton, both of Buckhead FMV, gave an overview of what exactly a home hospice business is and some of the main factors to consider when valuing these types of companies.
Industry Snapshot: Home Hospice Firms
An at-a-glance overview of the valuation nuances of home hospices firms, based on a webinar presented by Darcy Devine and William Hamilton, who are both with Buckhead FMV.
D&P: Latest multiples in healthcare services
The S&P Healthcare Services Index increased 6.3% over the last month, outperforming the S&P 500, which increased 3.0% over the same period, according to the “August 2018 Healthcare Services Sector Update” from Duff & Phelps.
Give the Market a Voice: Applying the Market Approach in Healthcare Business Valuations
The market approach often gets ignored in favor of the income and asset approaches for a variety of reasons including a lack of comparable transactions, limited comparability with whatever market data does exist, and a general lack of contextual information related to precedent deals. In this webinar, William Hamilton will address industry-specific issues related to applying the market approach in healthcare business valuations. The market approach is a very important reasonableness check that shouldn’t be ...
Common pitfalls to avoid in healthcare valuation engagements
In BVR’s recent webinar, Healthcare Valuation: Approaches to Value and Common Pitfalls, experts Nicholas Janiga and Fred Lara (both of Healthcare Appraisers) covered the most common pitfalls to avoid when working on a healthcare valuation engagement. Watch the clip on the issues that can arise in these types of engagements.
Valuing Healthcare Brands
Healthcare entities use branding to differentiate themselves, and that branding can significantly impact value. In this session with Jim Lloyd and Annapoorani Bhat, learn to evaluate factors that influence brand strength and review practical examples of organizations that have successfully leveraged their brand value. Join the discussion on why brand valuation services may arise for healthcare entities, and the appropriate methodologies, calculations, and considerations for brand valuation in a healthcare setting.
Healthcare valuation 101: Surgery center case study
In BVR’s recent webinar, Healthcare Valuation 101, Jim Lloyd and Kathryn Culver (both of PYA) presented a case study in which their client engaged them to value a controlling interest in a multispecialty surgery center. Keep reading for the key facts on the case and be sure to watch the webinar clip in which the presenters cover the case study in detail.
Urgent Care Valuation: Key Considerations in M&A and Joint Ventures
The urgent care landscape continues to evolve at a rapid pace: private equity investors appear to be moving toward other physician-centric business models while health systems and payers continue to show an appetite for urgent care. As urgent care is nearing saturation in many markets, collaboration via joint ventures can be a more effective strategy than head-to-head competition. Led by a diverse team of healthcare experts, this session provides perspective on overall healthcare delivery strategy ...
Debate Over: Final Resolution of How to Value Physician Practices
For many years, the healthcare valuation community has been divided over which approach to value should reign supreme in valuing physician practices. Thought leader Tim Smith claims he has now definitively resolved the debate of why there are such divergent value indications in physician practices. He proposes the issue stems from incorrect application of cost and asset approaches along with the failure to properly reconcile these indications in arriving at a conclusion of value. He ...
Healthcare Valuation: Approaches to Value and Common Pitfalls
Driven by governmental enforcement actions on hospitals, physicians, and other industry participants, compliance-related healthcare valuation has developed into a significant niche within the appraisal industry over the past 20 years. Appraisals performed in this environment are subject to certain limitations and challenges that do not impact work performed in other industries. Join Fred Lara and Nick Janiga for an overview of the healthcare regulatory environment and how it impacts the approaches to value in the ...
Groundbreaking study debunks use of surveys for FMV of physician compensation
An article in an upcoming issue of hfm Magazine presents groundbreaking research and data analytics that challenge commonly held beliefs about survey data, physician compensation, and fair market value.
Book Review: The BVR/AHLA Guide to Valuing Physician Compensation and Healthcare Service Arrangements, 2nd Edition
The second edition of this book expands upon the groundbreaking first edition and provides 1,400 pages of content written by 42 experts in the field, including attorneys and valuation experts.
Healthcare Valuation 101
The U.S. healthcare industry is very large, complex, and changing rapidly. This highly regulated industry is also significant users of valuation services. “Fair market value” opinions are commonly requested in connection with entity transactions, affiliations and joint ventures, and various physician compensation arrangements. Failure to consummate transactions at fair market value can result in substantial financial consequences. If you are involved in healthcare transactions or interested in providing valuation services within this exciting sector, join ...
Special situations affecting home healthcare value
Healthcare is arguably the most highly regulated industry in the country. For any healthcare valuation, appraisers should have a reasonable understanding of regulations affecting healthcare providers and nonprofit organizations and a grasp of the current changes that Congress and state legislatures may enact. Excerpted from the Guide to Ancillary Healthcare Services Valuation, here are some special considerations to take into account when valuing home healthcare businesses.
Update on the hospice market and valuations
The hospice market is fragmented with many small independent players that are not associated with health systems, say speakers on a recent BVR webinar.
Valuation benchmarks for ASCs
HealthCare Appraisers Inc. has interviewed ambulatory surgery centers(ASCs) to determine trends in the value and characteristics of ASC ownership interests.
Tips on choosing the best valuation approach when valuing home healthcare businesses
As with other industries, a unique set of variables drive the profitability and risks associated with home healthcare service lines, making it difficult to make global assumptions. Appraisers need to develop an understanding of each home healthcare service line and how they interact if the subject business operates in two service lines or more. Appraisers also need to choose the best valuation approach for the unique service line they are valuing. Here are a few tips on each of the approaches.
D&P updates multiples in healthcare services
The S&P Healthcare Services Index declined 1.9% over the last month, but outperformed the S&P 500, which declined 2.7% over the same period, according to the March 2018 Healthcare Services Sector Update from Duff & Phelps.