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

The radiology industry is highly fragmented with independent groups accounting for approximately 45% of the estimated $18 billion in annual revenue (Swingman). Independent radiology groups and potential buyers understand that the market is extremely active due to investors’ access to capital, opportunities for consolidation, and the nature of radiology business operations. Radiology practices typically have lean… Read More

Written by Alex Jarocki, CVA, Brad Brumbaugh, CFA, CBA, and Jason Ruchaber, CFA, ASA Most people cringe when they think about going to the dentist, but even a root canal is painless compared to a DOJ investigation. During 2016 the Federal Government recovered $2.5 billion in federal losses from false claim actions[1] in the healthcare industry,… Read More

Written by: Clinton Flume & Sydney Richards One of the most important assets of a business is its brand. A brand is a type of intellectual property that is intended to distinguish one business from another. Differentiation is especially important for healthcare entities, where brands have the power to signal high-quality patient care and outcomes… Read More

As consolidation in the healthcare industry continues across the various sectors, the professional practices of Radiology service providers have emerged as leading targets for many investors in the United States. Radiology services and imaging services are related, but are two distinct types of businesses that can be identified and reimbursed separately. They are commonly referred… Read More

The Department of Justice (“DOJ”) experienced its third highest annual recovery in False Claims Act (“FCA”) history for the fiscal year (“FY”) 2016.[1] Of the $4.7 billion in settlements obtained from the DOJ involving fraud and false civil claims, over half ($2.5 billion) were related to the health care industry. These healthcare fraud claims included… Read More

March 2017 A frequently cited solution to reducing rising healthcare costs is to place patients in the lowest cost setting of care.  Accordingly, home health has become a forefront discussion of the healthcare industry.  Large health systems contemplate better ways to integrate home health services into their continuum of care offerings while traditional operators (including private equity… Read More

The highly concentrated New Jersey ambulatory surgery center (“ASC”) market is on the brink of change as new legislation is poised to alter the outpatient surgery landscape. According to the Centers for Medicare and Medicaid Services, New Jersey holds the third highest ASC concentration, with approximately 3 Medicare licensed ASCs per 100,000 persons.1 Further, per the… Read More