A national health system had a decentralized process for approving and establishing provider compensation across its numerous locations, leading to inefficiencies and compliance challenges.
Situation
With continued provider growth and an expanding footprint, the health system found its fair market value (FMV) process to be both time-consuming and expensive. Leaders recognized that the manual approach was not only slowing down operations but also increasing reliance on external valuation fees. The organization aimed to streamline the process by reducing costs and accelerating the generation of FMV documentation. A key compliance goal was to ensure every provider arrangement had current FMV support on file.
Solution
VMG Health conducted a comprehensive assessment of the system’s existing provider compensation arrangements, including on-call, medical directorships, and clinical roles. Through this evaluation, the team implemented FMV-MD®, a technology-enabled solution that delivers automated FMV opinions for common compensation arrangements. The platform also flagged agreements that required additional documentation or a custom FMV report, enabling a more targeted and efficient use of resources. VMG Health’s deep expertise ensured the system could scale its compliance infrastructure without sacrificing accuracy or quality.
Success
As a result of the implementation, the health system has saved an estimated $160,500 in valuation fees annually. More importantly, it now maintains FMV documentation for every provider arrangement across the enterprise. The automation of FMV opinions has significantly accelerated turnaround times while improving consistency, positioning the organization for sustained compliance and operational efficiency.
Contributor:
Mary Beth Riley
