Physicians perform a broad range of services including patient evaluation and management, surgical procedures, and a variety of ancillary diagnostic and therapeutic services. These services are provided in a variety of healthcare settings including physician offices, urgent care centers, hospitals, ambulatory surgery centers, skilled nursing facilities, hospices, outpatient dialysis facilities, clinical laboratories, and other post-acute settings.
Continuing reimbursement pressure from government and commercial payors has resulted in a decline in the percentage of physicians in private, physician-owned practices. To avoid declining revenues and increased capital burdens associated with electronic medical records, many physicians have sold their private practices and entered into employment arrangements with local hospitals/health systems.
VMG Health has insight into the latest trends and numerous clinical compensation structures based on our extensive experience in valuing clinical compensation arrangements. As a result, we can rapidly assist in confirming if an arrangement with a physician, or other entity, is fair market value.
Documentation illustrating that physician clinical compensation is set at fair market value represents best practice for compliance purposes. Based on regulatory guidance, clinical compensation levels should be derived based on a sound methodology reflecting the terms of the arrangement and relevant value drivers. Two examples of commonly utilized value drivers that may be considered in deriving a proper payment for clinical services include: 1) personally performed work relative value units and professional collections and 2) understanding the market in which a physician practice in terms of expected reimbursement levels. VMG has a keen understanding of these factors, and a myriad of other valuation drivers associated with clinical compensation arrangements.