Valuation for the economics of digital health

In a friendly PC structure, the professional corporation provides clinical care while the MSO may build and supply the platform, brand, and supporting operations. The practice uses those resources in delivering services and generating revenue. We identify the contributions of each entity and the rights covered by their agreements.

An investment in software or a brand can support growth without a proportionate increase in administrative headcount. Clinical capacity, service intensity, and continuing development still matter. We examine the actual operating model to distinguish the costs that grow with activity from the assets that can serve a broader business.

The management agreement often serves as the umbrella for several economic relationships. We evaluate administrative services, technology access, brand rights, and other included resources using methods suited to each component. The work addresses the appropriate compensation for the MSO’s full contribution, including the return associated with the assets and services it provides.

Funding, new products, additional practices, and changes in platform use can alter the resources and rights being provided. We assess how those changes affect the valuation scope, the fee components, and allocations among professional entities.

Our work also includes business and ownership valuation, physician compensation, and standalone intellectual property assignments. We coordinate the relevant assumptions when an engagement spans several of these areas.