Healthcare
Valuation Practices and Facilities

There are many events that may set the stage for a valuation of a healthcare organization. Whatever the reason for the valuation, there are significant and complex aspects of each transaction, related to the reimbursement, regulatory, technology and company environment, which should be carefully examined. Marshall & Stevens has the experience to provide intelligent, detailed, and supportable valuation opinions. Our valuation professionals understand the nuances of conducting valuations within the context of the Stark Law and Anti-Kickback Statutes.

Healthcare Valuation Practices and Facilities Service Sheet

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Healthcare Industry Services

Our Healthcare Group provides timely valuation analysis to the entire spectrum of participants in the healthcare segment. We pride ourselves on our ability to demonstrate a complete understanding of your needs and financial considerations, and provide the necessary input and solutions to the challenges you face. Our services include, but are not limited to:

Existing Operations

Alternative Use Studies
ASC 350 Impairment Testing
Capital Asset Review “Ghost Assets”
Claim Disputes
Debt and Equity Valuations
Depreciation Studies
Litigation Support
Insurance Valuations
Internal Financial Planning
Management Services
Agreement Valuations
Partial Interest Valuations
Property Tax Consulting
Physician Service Agreements
Vendor Contracts Valuations
Operational Overviews
Revenue and Expense Analysis
Sale/Leaseback Analyses

Merger & Acquisitions/Divestiture

Buy/Sell Consideration
Fairness and Solvency Opinions
Cash Flow Analysis
Financing Valuation
- Including Bonds
- HUD 232 and 242 Requirements
Liquidation Analysis
Purchase Price Allocation

Pre-Acquisition and Construction

Absorption Studies
Current/Prospective Valuations
Demographic Analysis
Development Cost Analysis
Financial Feasibility Studies
Highest and Best Use Analysis
Market Feasibility Studies
Need and Supply Analysis
Site and Area Analysis

Select Healthcare Engagements

Marshall & Steven’s Healthcare Practice is headed by some of the industry’s leading valuation experts. With experience valuing healthcare organizations with more than $4B in revenues and $3B in assets. Marshall & Stevens has the expertise to handle the most complex assignments. Below is a list of a few select engagements.

Portfolio Engagements

Complex multi-discipline valuation of 80 business enterprises – 70 long-term care facilities (SNFs) and 10 hospitals (acute, rehabilitation and LTCH hospitals) for financing purposes
Performed multiple intellectual property valuations for a Fortune 100 pharmaceutical company in support of their developmental drug portfolio
Business, intangible asset, joint venture agreement, and stock valuation for a $2.8B Healthcare system
Purchase price allocation and impairment testing valuation services (ASC 805 and 350) for the hospital, health services, and rehab divisions

Buy/Sell Consideration

Opinion to the Directors of a medical group as to the fair market value of a minority equity ownership interest in the company
Pre-Acquisition due diligence for a Fortune 500 medical services company with total revenues over $4B

Wealth Transfer/Tax Reporting

Valued multiple partial interests in a national medical group and physician network for transfer to tax beneficial entities

Financial Reporting Compliance

Provided multiple compliance valuations for a $500M rehab group that operates and owns 30+ long-term acute care hospitals (LTACH)
Annual impairment testing (ASC 350) for a $200M disease management company
Impairment testing (ASC 350) of a non-profit acute hospital system with eight hospitals operating across the U.S.
Purchase price allocation (ASC 805) for a $122M acquisition of a biopharmaceutical manufacturer and distributor

IRS and Related Engagement

Valuation of an occupational health business unit and the retrospective fair market value of a capital stock on a controlling interest basis for Franchise Tax Board (California) audit