Survey Says: The Time to Evaluate Your Market-Based Physician Compensation Plan Designs Is Now

With the COVID-19 pandemic impacting compensation and productivity levels in 2020, significant changes to wRVU values in the 2021 Medicare physician fee schedule, and the continued industry move from volume to value-based reimbursement and compensation models, VMG previously recommended a cautioned approach to compensation surveys in 2021, 2022 and potentially beyond. While it is still… Read More

Location, Location, Location: Premium Sites and Healthcare Real Estate

Written by Kristin M. Herrmann, MAI and Victor H. McConnell, MAI, ASA, CRE The late Lord Harold Samuel, founder of the UK property company Land Securities, has been credited with coining the expression: “There are three things you need in property, these are: location, location, and location.” [1] While what makes for a “good” location… Read More

Post-COVID Hospital Guidance: Comparing Full-Year Guidance from Public Hospital Operators before the COVID-19 Pandemic and One-Year Later

Last March, the United States declared a national emergency related to the coronavirus (“COVID-19”) pandemic. At the time and throughout the beginning of the pandemic, meaningful economic factors were unknown including the evolution of the disease, the extent of its economic impact, and the results of steps taken and yet to be taken by the… Read More

Are You Under (or Over) Insured? Analyzing Replacement Cost for Hospital Systems, Investors & other Healthcare Providers

Evaluating the replacement cost of the facilities and equipment for your hospital system should involve a formalized, detailed process, whether occurring at regular intervals or on an as-needed basis due to specific events (property damage due to natural or man-made causes, acquisitions, new construction or renovation). There are risks to being over insured or under… Read More

Ambulatory Surgery Centers are in the Spotlight in the OIG Advisory Opinion No. 21-02

Written by Bartt B. Warner, CVA Noteworthy for investors of ambulatory surgery centers (“ASCs”), the Office of Inspector General (“OIG”) released a favorable (low risk) Advisory Opinion (No. 21-02)1 on April 29th, 2021. The Advisory Opinion reviewed a proposed arrangement (“Arrangement”) in which a health system (“Health System”), manager (“Manager”) and five orthopedic surgeons and… Read More

2 Major Themes from Public Healthcare Firms trailing COVID-19 – Part 2: Looking Forward

Contributors: Savanna Dinkel, Blake Madden and Chris Madden Providers: Continued Shift to the Outpatient Setting With the roll-out of the vaccine and the lifting of COVID-19 restrictions, providers are able to look further forward towards their operations in a post-pandemic world. During Q4 2020 earnings calls, the latest occurring on March 8, 2021 (RadNet), management… Read More

Key Takeaways from the Medscape Physician Compensation Report 2021

Written by Caroline Dean and Bartt B. Warner, CVA As the COVID-19 pandemic presented unique challenges for healthcare providers and beyond, physician compensation has mostly trended back toward pre-COVID levels per the Medscape Physician Compensation Report 2021 (“Medscape Report”). According to the Medscape Report, which included information from 17,903 physicians in over 29 specialties, average… Read More

2021 Diagnostic Imaging Rate Changes: Impact & Outlook

Written by Greg Henderson & Samuel Betsill Diagnostic imaging in the United States is estimated to generate over $100 billion annually, with outpatient, non-hospital-based imaging accounting for approximately 40% of the total market. Since Congress passed the Deficit Reduction Act of 2005, significant reimbursement rate cuts have been made to the diagnostic imaging business. Since… Read More

2 Major Themes from Public Healthcare Firms Trailing COVID-19 – Part 1: COVID’s Trailing Effects

Contributors: Madi Whyde, Alex Malin, Spencer Coronado, Keith Ponsler As the healthcare sector begins to recover from the coronavirus (“COVID-19”) pandemic, insights and experiences from payors and providers paint an optimistic picture for 2021. In this two-part series, VMG has summarized key observations regarding the following two major themes from public healthcare firms: Part 1:… Read More

Quality Metrics & FMV: By Specialty Considerations

Written by Kyle Spears and Jen Johnson, CFA The value-based care reimbursement environment has emphasized the evaluation of quality by measuring performance with metrics. As a result, hospital executives, management, providers, and legal counsel all share a fundamental question: what are the guidelines to selecting metrics that properly measure the quality of care and are… Read More