Fair Market Value

Hospitals and health systems have increasingly employed physicians rather than physicians owning their own practice, which has caused a fundamental shift.

Small changes to wRVU rates have a big impact on providers’ paychecks, organizations’ income statements, and potential compliance risks.

Hospitals and health systems must be cognizant of the risks associated with “compensation stacking”, a term used to describe the cumulative effect on fair market value and commercial reasonableness as a result of multiple, individual arrangements with a physician, or a single arrangement with multiple individual components. As closer alignment between hospitals and physicians is […]

Physician compensation is the largest cost in the practice. It must be used to align physician behavior with the actions needed to make the system successful. Controlling that evolution over time is and will remain a challenge, and requires active management and physician involvement. Tip 60: Compensation plans must reinforce the results required for success. […]

The IRS, OIG and valuation industry have set well-defined standards for FMV (Fair Market Value) in typical physician/hospital transactions. That said, in our consulting practice, we often encounter situations that can cause problems when handled incorrectly. Reaching the Upper Limits Most FMV physician compensation arrangements are based on national data broken down geographically and into […]

Across the country, many hospitals are relying on a third party to review their anesthesia subsidies. We are seeing this trend because groups are requesting, and even demanding, additional financial support in exchange for the services they provide. Hospitals with financial and fair market value compliance concerns are uncertain how to respond so we’ve outlined […]