The number of employed physicians continually increases as both hospitals and health systems navigate alignment strategies surrounding the shift to value-based care. As a result, the issue of “stacked” compensation is becoming more prevalent as physicians are continually taking on more administrative roles to support these alignment strategies. Stacked compensation refers to taking the individual… Read More
Written by Colin Park and Clint Smith 2018 was another dynamic year for the healthcare industry filled with continued evolution of patient care models and transactions aimed at gaining scale and greater vertical and horizontal integration. Amazon, JPMorgan, Berkshire Hathaway and other major players are plotting their entrance into the healthcare marketplace. The healthcare industry… Read More
Written by William Teague and Drew Smyth As detailed in the VMG Healthcare M&A Report: 2018 Trends and 2019 Expectations, acute care hospital transaction activity has been robust with numerous deals being closed or announced over the past year. One of the most high-profile, recent transactions was HCA’s acquisition of Mission Health, a non-profit hospital… Read More
A high level overview of lab marketing services agreements under the new law, Eliminating Kickbacks in Recovery Act of 2018 (“EKRA”) EKRA brings a regulatory change that is having a drastic impact on the lab marketing services arena, including commission-based payments to marketing and sales professionals. EKRA is designed to prevent referrals in exchange for… Read More
This article is intended only for general informational purposes. VMG Health is not rendering tax, accounting, financial, or other professional advice through this article. This article is not intended to replace such professional advice or services, nor should it be used as a basis for any action or decision which may affect your business or… Read More
So, You’re Building (or Investing In) a Medical Office Building… In decades past, a speculative (“spec”) building for medical tenants was rarely constructed, as few real estate developers were willing to take on the perceived risk associated with the medical sector due to comparatively high tenant improvement (“TI”) packages, uncertain absorption periods, and the dominance… Read More
If you discuss the current transaction environment with healthcare professionals, Physician Practice Management (“PPM”) deals would be one of the hottest trends you would hear about. Strategic operators looking to defend their existing facilities from competition and private equity buyers seeking to deploy idle capital have made acquisitions of physician practices in specialties such as… Read More
A high level overview of quality metric market trends and value drivers from a valuation firm’s perspective. In a value-based reimbursement environment, critical success factors have shifted from financial performance toward cost efficiency and quality performance benchmarked to national standards. With the growing influence of quality outcomes measurement organizations, such as The Joint Commission, LeapFrog,… Read More
This primer is meant to educate and guide healthcare providers, executives, attorneys, and compliance professionals on the risk associated with physician compensation arrangements. It is well known that there has been increased regulatory scrutiny around healthcare fraud demonstrated by both sizeable settlements and a surge in qui tam actions. Aside from the more widely perceived… Read More
Written by: Savanna Dinkel, Zach Sadau, Vincent M. Kickirillo, CFA, CVA Over the past several years, private equity firms have increasingly turned to specialty physician practices in order to generate significant returns for their investors. Since 2011, dermatology has been an active market for these types of transactions and the market is not anywhere close… Read More