Healthcare facilities often elect to contract with a third party for the provision of certain professional interpretations due to various operational and financial reasons. These agreements are typically structured as a percentage of collections or on a per interpretation basis. When structuring these arrangements, it is imperative to understand the expected services to be provided and which party is billing and collecting for the services. In addition, compensation should be set at fair market value. Challenges include: how to appropriately allocate reimbursement, understanding what, how and when the professional services will be provided, and how market factors will impact the compensation under the arrangement.

VMG Health has insight into the latest trends and various professional interpretation compensation structures based on our extensive experience with these types of arrangements. As a result, we can rapidly assist in confirming if a professional interpretation arrangement is consistent with fair market value.


Documentation illustrating that a professional interpretation arrangement is set at fair market value represents best practice for compliance purposes. Based on regulatory guidance, compensation should be derived based on a sound methodology reflecting the terms of the arrangement and relevant value drivers. Three key value drivers that should be considered when analyzing a professional interpretation arrangement include: 1) procedure mix 2) payor mix and 3) required physician specialty and time required. VMG has a keen understanding of these value drivers, and a myriad of other valuation drivers associated with professional interpretation arrangements.