Management and commercial arrangement valuation
A management agreement can cover the operating relationship between a management services organization (MSO) and a professional practice: administrative support, technology, brand rights, and other resources. We evaluate what the MSO provides and the compensation attributable to each contribution.
The full scope of the agreement
Management services agreements and administrative services agreements may combine personnel, billing and collections, software, brand rights, space, equipment, implementation, and third-party costs. The contract and operating model determine which components belong in the analysis.
Separate the components and reconcile the fee
Services and licensed assets can require different methods. We identify the relevant resources, allocate shared costs and benefits, evaluate each component, and reconcile the combined payment. That includes examining whether the same resource has been counted more than once.
Account for the economics of intellectual property
When the MSO develops technology or a brand used by the practice, administrative staffing costs do not describe its full contribution. The analysis considers the rights provided, their economic use, and the appropriate compensation for making those assets available. This is particularly relevant to digital health businesses that invest in platforms designed to support growth.
Connect the conclusion to the payment terms
We reconcile the component analyses into the contractual fee and allocate it among the entities receiving the benefit. Depending on the arrangement, the fee may be fixed, cost-based, or expressed using another payment unit. Shared resources and overlapping charges receive specific attention.
Related commercial arrangements
Our work also addresses staffing, affiliation, joint operating, revenue allocation, and other healthcare service arrangements. The analysis is tailored to the responsibilities and economic contributions of the parties.