FAIR MARKET VALUE DETERMINATIONS

Federal laws restrict the ability of health care providers to enter into business arrangements that may lead to physicians referring patients to a facility or using certain equipment. One of the tests for determining whether an arrangement is allowed is whether transactions for services, goods or property are priced at fair market value. A business arrangement that creates transactions not a fair market value can create the potential for serious legal and financial consequences for the parties.

RPC’s valuation practice has extensive experience with valuing a wide range of healthcare goods, services and property. Our valuation professionals understand the complex issues that impact healthcare providers and have the expertise and resources needed to accurately value them.  Using our training and experience we are able to assist attorneys and their healthcare clients to structure transactions to satisfy federal requirements and to adequately document that payments made as part of an arrangement are at fair market value.
The need for fair market value determinations often arise in the following circumstances:

• Physician compensation for services
• Physician practice acquisition
• Joint ventures and partnerships
• Office leases
• Equipment and staff leases