5 Factors Spurring Physician Employment

As physicians continue to weigh the benefits and drawbacks of independent ownership and hospital employment, changes in the healthcare industry are gradually pushing physicians toward alignment with health systems. Data from the American Hospital Association has indicated that the number of physicians employed by hospitals has increased 34% from 2000 to 2010 and approximately 25%… Read More

The Perils of the “Trend and Bend” (Part 1 of 3)

Part One: Trend and Bend When I think of the trend and bend (or just bend), I’m always reminded of the classic line by Irwin M. Fletcher as aircraft mechanic G. Gordon Liddy “c’mon guys, it’s so simple, do you need a refresher course, it’s all ball bearings these days”. Neither the quote nor the… Read More

Surprisingly Positive Trends in Cardiology Physician Compensation

In 2010, the Centers for Medicare and Medicaid Services (“CMS”) dealt cardiologists a significant cut in technical reimbursement for their primary in-office ancillary services (such as echocardiography, nuclear medicine, etc.). Further, CMS eliminated lucrative consultation codes replacing them with lower-reimbursed E&M codes. Given these reimbursement cuts, it would seem logical to observe a decline in… Read More

How do Demographic Trends Affect Valuation Conclusions?

Consider two identical ambulatory surgery centers – one located in Texas and one in Michigan. Assuming that all operating characteristics of the two centers are the same – revenue, EBITDA, case mix, physician mix & age, payor mix – do the ASCs have equal or different values? Without understanding the demographic conditions and trends in… Read More

Physician-Owned Hospitals: A Tumultuous Past Has Given Rise to a Resilient Industry

VMG has been intricately involved with physician owned hospitals (POHs) since their inception. In fact, VMG assisted in the development and continues to be involved in an advisory role of numerous highly successful POHs, both locally and nationwide. Our involvement with this industry has afforded us the opportunity to observe the financial and operational performance… Read More

5 Year Valuation Comparison: VMG Index vs. S&P 500

Over the last five years, the United States economy has been on a rollercoaster ride. From rising oil prices to Europe’s debt crisis to our own banking, housing, and credit crises, Americans have been weathering an economic storm. However, according to the Economist, “[…] economic recovery […] needs the [recovery] process to advance far enough… Read More