Due Diligence for In-Place Physician Compensation Arrangements

Healthcare Acquisitions Rapid Due Diligence for Contractual Arrangements

As the pace of health system, hospital and other health care organization consolidation continues to increase, it is essential for acquirers to employ fast, efficient, and dependable methodologies to determine whether existing physician compensation and other contractual arrangements are Fair Market Value (FMV).

With heightened regulatory scrutiny and growing settlements, non-compliance liability exists in a proposed buyout or merger. Therefore, acquirers should review all physician contracts and other key agreements to determine if they are reasonable, and meet the FMV requirements for Stark and the Anti-Kickback Statue (AKS).

Simple Compensation Arrangement FMV Due Diligence Process

VMG Health can help determine whether potential FMV non-compliance risks are present with a simple process:

  • Phase 1 – Categorize agreements by type and risk profile
  • Phase 2 – Conduct FMV analysis for arrangements that are flagged as higher risk

If you are contemplating a health system, hospital and/or other health care organization transaction, consider partnering with VMG Health’s team of experienced professionals. VMG Health provides a reliable and economical way for your due diligence team to rapidly identify FMV non-compliance liability for compensation associated with management and physician service arrangements.