Hospital Valuation: Beware of Market Approach “Rules of Thumb”

Throughout history, mankind’s ability to recognize patterns (especially potentially dangerous patterns) in the environment and respond quickly was crucial to survival. The study of evolutionary psychology describes how mankind has evolved into pattern-recognizing machines that connect dots and draw conclusions out of patterns we think we find in nature. In a similar way, hospital valuation… Read More

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