- The strength of the practice′s income stream and what it produces for the owner(s) is what creates true value.
- The key to a successful valuation is deciding whether or not the practice′s future income stream will mirror its present income stream.
Along with case examples, sample valuation letters, and checklists for gathering data, as well as an exhaustive appendix and glossary of terms, Valuation of a Medical Practice has complete details on:
- Regulatory issues Medicare fraud and abuse, private benefit/private inurement, the Stark Law.
- Special issues gross revenues, referral patterns, payer mix, practice efficiencies and transition, productivity.
- Getting started engagement preplanning and planning, requesting pertinent data.
- On–site inspection and owner interview fixed assets, personnel, accounting system, supply inventory, marketing, physician and management issues.
- Completing the process reporting, reviews, reconciling valuation methods, applying premiums and discounts, obtaining client representations.
Straightforward, accessible, and exhaustive, this is an important resource for anyone involved in the valuation of a medical practice. When it comes to valuing a medical practice, the parties involved often disagree on how it should be best assessed. Written by leading authorities in the field, this comprehensive resource clears up any confusion by examining and explaining the key issues involved in the valuation process, as well as common pitfalls and mistakes that should be avoided. Packed with sample valuation engagement letters, checklists for gathering data, and helpful case studies, Valuation of a Medical Practice covers all the essential bases, from regulatory issues and operating costs to capitalization and fixed assets in short, everything needed for an accurate valuation.
Chapter 1 Regulatory Issues and the Valuation Process 17
Chapter 2 Special Issues Pertaining to the Valuation Process 23
Chapter 3 Beginning the Valuation Process 57
Chapter 4 The Capitalization Rate 87
Chapter 5 Valuation Methods 105
Chapter 6 On–Site Inspection/Owner Interview 145
Chapter 7 Completing the Valuation Process 165
Chapter 8 Sample Reports 189
RHONDA SIDES, CPA, is the Senior Manager of Horne CPA Group in Nashville, Tennessee. She specializes in practice valuation, cost accounting, operational assessments, and financial feasibility issues related to group and integrated delivery system development. A member of the Georgia and Tennessee Societies of CPAs, the American Institute of CPAs, and the Healthcare Financial Management Association, she is also a candidate member of the American Society of Appraisers.
GREGORY D. ANDERSON, CPA, CVA, a shareholder in the Horne CPA Group′s Hattiesburg office, is a member of both the firm′s Physician Services Division and the firm′s Business Valuation/Litigation Support Division. He has presented programs on medical practice valuation topics to organizations of physicians, health care managers, and attorneys, and has served on the Valuation Quality Control Committee of the American Medical Advisory Group and on the Editorial Board of Healthbeat, the firm′s physician services publication.