Marshall & Stevens’ Health Care Valuation services professionals value healthcare facilities and practices, equity ownership interests, real estate, medical equipment, compensation agreements, and rental agreements. Our hospital and physician valuation experts understand the nuances of conducting valuations within the context of the Stark and Anti-Kickback statutes.
Health Care Valuation:
Hospital and Physician Valuation Services
Our hospital and physician valuation experts provide timely valuation analysis to participants across the entire health care industry. 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.
Health care industry companies require valuations of enterprises, fractional interests and intangible assets, including physician services agreements, as well as owned and leased real estate and equipment. Our hospital and physician valuation experts have typically provided high-quality health care services to the following health care facilities and medical practices:
- Acute Care Hospitals
- Ambulatory Surgery Centers
- Dental Practices
- Dialysis Centers
- Diagnostic Imaging Centers
- Home Health Providers
- Hospice Providers
- Inpatient and Outpatient Rehabilitation Units
- Long-Term Acute Care Hospitals
- Nursing Homes
- Physical Therapy Clinics
- Physician Practices
- Radiation Therapy Centers
- Specialty Hospitals
- Senior Living Facilities
Our hospital and physician valuation professionals are experts at using a problem-solving approach that recognizes valuation as part of a broader decision-making process, which in turn, requires an appreciation of the context in which advice is sought and an ability to foresee client needs and issues.
Drawing upon the full range of our valuation and professional expertise, we combine multiple methodologies, as required, to analyze each situation.
Typical Client Engagements
- Independent Fairness Opinions for either buy-side or sell-side of transactions.
- Valuation of health care business enterprises and related real estate and equipment for buy/sell/lease/investment decisions.
- Valuation of fractional interests in medical practices, real estate, and intellectual property for estate and gift tax reporting.
- Purchase price allocation valuation services (ASC 805) and impairment testing (ASC 350 and 360) for medical and dental practices, hospitals, clinics, health care technology and services businesses.
- Cost Segregation (accelerated depreciation analysis) for hospitals, clinics, MOBs, senior living facilities, etc. including studies only focused on tenant improvements for tenants.
- Valuation of machinery & equipment and real estate for financing purposes (debt, sale leaseback, lease, etc.).
- Valuation of Physician Compensation Agreements and Management Services Agreements.
Management Services Agreement (MSA) Valuation
A common business practice for health care providers is to form a Management Services Agreement (MSA) with a Management Service Organization (MSO), which will contractually provide services to the health care provider(s), such as: management information systems, accounting, bookkeeping, billing, and collection. As payment for these services, the MSO receives a management fee based upon a percentage of the health care providers’ net revenues.
There are many laws that MSOs and health care providers must stay compliant of or face severe consequences, primarily the Stark Law and Anti-Kickback Statute at the Federal Level. In addition, each state has its own laws that require compliance. Within these bodies of law, the government stipulates that contracted compensation in a professional service arrangement between referring parties, such as MSA’s, be set at Fair Market Value by an experienced valuation professional.
In order to establish a safe, compliant, profitable and effective MSO, one of the requirements is to determine whether the MSA demonstrates a fair market value agreement. The determination of the fair market value of an MSA is critical for compliance with existing laws and regulations. Marshall & Stevens’ Health Care valuation professionals have the skills, expertise, and industry knowledge to assess if the fees within the MSA are at fair market value.
To discuss these or other matters with our Health Care valuation professionals, please contact one of the specialists listed below.