A national provider of in-home healthcare services relied on an internal threshold to determine when third-party FMV opinions were needed resulting in high valuation costs and delayed turnaround times.
Situation
The organization primarily managed on-call and administrative arrangements with its provider network. Given the volume of these arrangements and the limitations of its internal process, many lacked sufficient FMV documentation. When an external opinion was required, it often came with significant costs and time delays, impacting operational efficiency and compliance readiness. Leadership recognized the need for a scalable solution that would improve documentation coverage while reducing dependency on outside valuations.
Solution
VMG Health conducted a comprehensive review of the provider’s existing compensation arrangements. Leveraging FMV-MD®, a proprietary automation platform, VMG Health enabled instant FMV opinions for the majority of agreements while flagging outliers that required additional documentation or a more robust valuation. Impressively, 94% of the organization’s arrangements were able to generate automated FMV support, significantly streamlining the internal compliance workflow.
Success
By improving the efficiency of the FMV process and increasing documentation coverage, VMG Health delivered an estimated $675,300 in value to the organization, when compared to what it would cost out in the market with the current nonautomated process. The provider now maintains FMV documentation for every arrangement, reducing risk while enhancing compliance standards. The solution not only minimized turnaround time but also created a sustainable, repeatable process that supports continued growth and regulatory confidence.
Contributor:
Mary Beth Riley
