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Healthcare Business Valuation |
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When a hospital or health system purchases, sells or joint ventures on a practice or a healthcare business such as an imaging, radiation therapy or ambulatory surgery center, the transaction must be handled at fair market value (FMV). It's best to have a third party value the transaction.
DGA offers recognized valuation credentials, industry expertise and significant experience in healthcare business valuation. We can provide FMV opinions on a stand-alone basis or as part of the negotiation of structuring of potential transactions that make business sense.
Healthcare industry business valuation presents numerous challenges due to the combination of regulatory scrutiny (private inurement, Stark regulations, anti-kickback statutes) and industry complexity. DGA has handled these challenges in more than 250 business enterprise valuations for physician practices, imaging and other diagnostic centers, ambulatory surgery centers, and treatment facilities.
Our experience has included numerous "re-pricing analyses" required to appropriately characterize all revenue streams. The FMV standard requires that the value of a business be considered from the perspective of the "willing, knowledgeable, uncompelled buyer." This "hypothetical buyer's" license may not always match that of the seller. The seller's revenue stream may need to be "re-priced" to reflect what would be generated under the buyer's license.
DGA incorporates appropriate adjustments to reflect proposed, pending, or recently implemented federal and state payment methodology adjustments. We have the capacity to re-price a detailed account-by-account historical subject revenue database.
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