Management & Administrative Agreements

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Optimizing Healthcare Operations with Expert Administrative Agreements

At VMG Health, we understand the critical role administrative agreements play in the smooth operation of healthcare facilities. With our extensive expertise in valuing management services arrangements, we provide unmatched insight into the latest trends and fee structures, ensuring your contracts are both comprehensive and compliant with fair market value standards.

From a business perspective, understanding standard services and appropriate fees is fundamental. Fair market value documentation is key in arrangements where a healthcare facility and management services provider can generate referrals. It can be challenging to understand typical management services in the market and the relative comparability between the services and the subject arrangement, appropriately use market fee data for similar services, and assess the cost of providing the services and a market-based return. VMG Health has insight into the latest trends and fee structures based on extensive experience in valuing management services arrangements.

Financial Management and Annual Operating Budgets
Administer Accounting and Purchasing Functions
Human Resource Management
Information Technology Management
Public Relations
Development Plans of the Facilities or Their Services

Maintain All Necessary Licenses and Regulatory Compliance
Design, Institute, and Supervise the Physical and Administrative Operations of the Entity
Prepare and Submit All Cost Reports
Negotiate and Consummate Agreements and Third-Party Contracts

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Documentation illustrating that a management services arrangement is set at fair market value represents best practice for compliance purposes.

Based on regulatory guidance, compensation should be derived from a sound methodology reflecting the terms of the arrangement and relevant value drivers. VMG Health has a keen understanding of these value drivers, including:

Net Revenue of the Facility
Expertise of the Administrative Services Provider
Breadth of Services Provided
Cost Structure and the Efficiency of the Management Services Provider
Whether Services Are Provided by Physicians or Non-physicians

With extensive experience in valuing over 1,000 management and administrative services agreements, VMG Health can rapidly confirm whether a management services arrangement is consistent with fair market value. Our expertise in the field enables us to assist clients effectively, providing streamlined, efficient valuation processes and simplified solutions where possible.

Partner with VMG Health to ensure your administrative agreements are both robust and compliant, fostering a seamless operation for your healthcare facility.