PYA GatesMoore provides Fair Market Value and Commercial Reasonableness Opinion Services. Fair market value (FMV) opinions encompass financial arrangements (payments) between hospitals and physicians, as well as financial arrangements between medical practices.
While financial arrangements between physicians and hospitals, or between physicians, appear similar on the surface, each situation is unique. FMV and commercial reasonableness (CR) should be determined on a case by case basis considering the facts and circumstances of each proposed arrangement as well as the relevant market for the services or product being provided. Also, annual reviews of established arrangements should be undertaken to ensure the services contracted for and the payments for same remain consistent with FMV and CR.
The types of financial arrangements that we have valued include:
- Employed physician compensation agreements
- Physician personal services arrangements (including medical directorships, call coverage compensation, and consulting arrangements)
- Physician recruitment and retention incentives
- Isolated transactions (medical practice acquisitions/divestitures)
- Space and/or equipment rentals
- Unique hospital/physician service arrangements
