Withum offers in-depth consulting and valuation services specific to the healthcare industry. Transactions within the healthcare space are governed by certain rules and regulations that require consistency with fair market value for the price or consideration of any arrangement. Acting as an independent third party, Withum assists its healthcare clients in understanding the effects of financial decisions across a continually evolving regulatory landscape.

Whether you require a valuation for regulatory compliance, strategic advisory, tax planning, financial reporting, or litigation support, Withum’s healthcare valuation team is equipped with the requisite knowledge and experience across a wide variety of specialties and modalities to value unique transactions and business arrangements for:

  • Mergers and acquisitions
  • Joint ventures and strategic partnerships
  • Owner buy-ins and buy-outs
  • Minority investments
  • Estate and tax planning
  • Financial reporting
  • Bankruptcy and liquidation
  • Litigation and dispute resolution

Who We Help

  • Health system executives
  • Business owners and operators
  • Physicians and medical groups
  • Legal counsel
  • Management service organizations
  • Business development professionals
  • Private equity firms and investors

Healthcare Valuation Challenges

Any healthcare transaction that involves physician ownership and/or an entity providing certain designated health services payable by Medicare are governed by a number of regulations at the federal level, such as the Stark Law, the Anti-Kickback Statute, and certain Internal Revenue Service regulations concerning tax-exempt entities. As such, these transactions must be supported by a determination of Fair Market Value to ensure regulatory compliance.

As the healthcare industry continues to shift from traditional fee-for-service to value-based care initiatives, the types of contractual arrangements into which healthcare organizations and physicians enter require an up-to-date understanding of emerging physician payment trends and regulations regarding commercially reasonable remuneration. Our professionals with decades of healthcare business and compensation valuation experience assist hospitals, healthcare systems, and provider groups in need of valuation services including fair market value analyses, commercial reasonableness reports, and operational and compensation structuring consulting services. Key examples of arrangements for which Withum can provide reasonable compensation opinions include:
  • Employed physician arrangements
  • Professional services agreements
  • Recruitment agreements
  • Income guarantee agreements
  • Medical director agreements
  • On-call coverage agreements
  • Teaching services
  • Telehealth services
  • Clinical co-management
  • Advanced practice provider supervision
  • Quality, pay for performance, clinical efficiency and other value-based arrangements

Comprehensive FMV Analysis and Report:
This extensive report will provide a comprehensive fair market value assessment of provider compensation including coverage, clinical, administrative, on-call, value-based care (quality) compensation components.

Limited FMV Addendum:
This limited analysis will provide clinical, administrative, and/or on-call compensation indications and qualifying assumptions.
Withum is equipped to value not just entire healthcare businesses but also the individual assets of a business—both tangible and intangible—including:
  • Medical equipment and furniture
  • Inventories of drugs and supplies
  • Commercial real estate for medical offices
  • Facility and equipment leases
  • Noncompetition agreements
  • Customer relationships
  • Medical records and accumulated patient data
  • Patents and proprietary technology
  • Trade names
  • Assembled workforces
Given the complex and continually changing landscape of healthcare, clients involved in transactions are often faced with unexpected risks arising from contractual disputes, civil and criminal suits, and regulatory enforcement actions—particularly with respect to fair market value and commercial reasonableness. Withum’s healthcare professionals can assist with protecting the interests of clients involved in legal matters pertaining to questions of value, including but not limited to:
  • Stark, Anti-Kickback, False Claims Act, and whistleblower lawsuits
  • Shareholder and employment disputes between physicians and healthcare organizations
  • Marital litigation and dissolution involving physicians

What We Value

Withum’s healthcare industry experts have experience across a multitude of specialties and service offerings. Listed below is a representative example of the healthcare entity types with which Withum’s professionals have valuation experience.

  • Ambulatory surgery centers (single- and multi- Specialty)
  • Physician practices (solo and group)
  • Kidney dialysis centers
  • Diagnostic imaging centers
  • Radiation therapy centers
  • Community, surgical, and critical access hospitals
  • Rural health clinics
  • Hospice, home health, and skilled nursing facilities
  • Clinical laboratories
  • Management service organizations
  • Pharmacies
  • Durable medical equipment companies

Contact Us

For more information or to discuss your valuation or advisory needs, please contact Withum’s Healthcare Valuation Team.

Leadership

Thomas J. Reck

Partner

Saddle Brook, NJ