Physician practice valuation
A physician practice valuation must reflect the specialty, the operating model, and the assets or interests being transferred. We evaluate those details together with the financial and operational information supporting the transaction.
Understand the practice
Relevant drivers may include encounters and procedures, provider productivity, payer mix, reimbursement, staffing, physician compensation, and ancillary services. For a practice with several locations, the analysis also considers how activity and costs are distributed across sites.
Define the valuation premise
A purchase of an ongoing business may require an income-based analysis. A transfer of specified assets may call for separate analysis of equipment, records, workforce, and other included assets. We assess the appropriate approach in light of the transaction and available evidence.
Connect compensation and business value
Proposed physician compensation can affect the earnings of the acquired practice. When both business value and compensation need to be evaluated, we can coordinate the work and reconcile the assumptions used in the two analyses.
Scope the specialty and ancillary operations
Primary care, surgical specialties, oncology, and other practices can have different revenue sources, staffing requirements, and capital needs. Infusion services, imaging, and interests in related facilities require explicit treatment in the scope.