Fair Market Valuation / Commercial Reasonableness

Physician and hospital alignment will be a key driver of financial success as accountable reimbursement methodologies like pay-for-performance, bundled payments, and shared savings become increasingly prevalent amongst governmental and commercial payers throughout the healthcare industry. In order to prepare for value-driven reimbursement, physicians and hospitals will continue to utilize a variety of collaborative arrangements / relationships to increase quality, decrease cost, and increase the coordination of care that they provide to their patients.

When hospitals and health systems partner with one of their key referral sources, physicians, federal regulations require that the terms of any agreement or relationship between the two parties be commercially reasonable and consistent with fair market value. Healthcare Consulting Services provides fair market value opinions and analyses for a wide range of arrangements and relationships, including:

• Employment compensation agreements
• Independent contractor professional services agreements (PSA)
• On-call coverage agreements
• Medical directorships
• Management and co-management agreements
• Subsidies/collection guarantees arrangements for hospital-based physician services
      (i.e. anesthesiology, hospitalists, etc.)
• Leasing arrangements (i.e. staff, equipment, space, etc.)
• Joint ventures