Financial Feasibility & Speculative Medical Office Building Construction

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

Valuing a Practice in a Physician Practice Management Context – It’s All About Salary, Sustainability and Succession

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

What to Know About Quality Metrics: The Quality Metrics Quiz

VMG Health Quality Metrics Quiz

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

A Primer in Physician Compensation Compliance Risk

Physician Compensation Compliance Risk

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

Radiology Groups: What to Consider when Selling Your Practice

Radiology Groups: What to Consider When Selling Your Practice

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

Acquisition Risk Considerations for Dental Practice Investors

Acquisition Risk Considerations for Dental Practice Investors

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

Personal Accountability: Healthcare Qui Tam Review

Health care Fraud

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