FMV-MD®
Physician Compensation Valuation
Peak Compliance and Cost Efficiency for Every Type of Physician Compensation Valuation
VMG Health understands that effective physician compensation strategies are vital for aligning incentives, enhancing outcomes, and driving your organization’s overall success. Healthcare leaders today face a competitive physician landscape and a myriad of physician alignment strategies, including employment agreements, joint operating agreements, creative physician alignment models such as multi-layered professional service agreements (PSAs), and other innovative partnerships. Based on the highly regulated healthcare industry, these physician compensation arrangements must be set at fair market value (FMV) and commercially reasonable to keep your organization compliant.
We have valued over 15,000 physician compensation arrangements, from traditional medical directorships and employment contracts to complex, innovative compensation plans tied to quality and cost-efficiency. Our team of experts continues to identify methods to expedite the valuation process and lower costs while maintaining peak compliance. We have developed system-wide analyses to address similar arrangements and our FMV-MD® provides expedited and discounted FMV opinions.
No matter what type of physician arrangement you are considering, you can count on our experts to have valuable insight and a robust FMV opinion.
- Automated FMV Opinions
The advanced technological software of FMV-MD® will navigate and track your provider compensation arrangements while saving you time and money. From benchmarking physician productivity to automated FMV opinions, FMV-MD will streamline your FMV process.
Learn More- Clinical Services
Physicians provide diverse services, such as patient management, surgeries, and diagnostic tests. With VMG Health’s deep expertise in trends and clinical compensation structures ensures, you can trust that your arrangements with physicians and other entities are fair market value.
- Commercial Reasonableness
Commercial reasonableness is a requirement in healthcare, ensuring business practices are fair, necessary, and compliant with regulatory standards such as fair market value. At VMG Health, we leverage our wealth of expertise to help organizations achieve and maintain commercial reasonableness by evaluating compensation structures and contractual terms to confirm whether they align with prevailing market practices and serve a legitimate purpose.
- Coverage/Income Guarantees
Income guarantee and subsidy arrangements with physicians are essential for hospitals to ensure they have the proper coverage for service lines with a higher-risk payer mix or need for onsite coverage coupled with low volume. Given their fixed expenses, physician groups often need guarantees or protection that their fixed costs will be covered reasonably to provide the required coverage. VMG Health has valued every type of compensation structure, including set stipends, revenue guarantees, dollar per wRVU guarantees, and flexible model subsidies tailored to each client and situation.
- Due Diligence for Contractual Arrangements as Part of a Hospital Acquisition
As health system, hospital, and other entity consolidation accelerates, acquirers must employ fast, efficient, and dependable methodologies to determine whether existing physician compensation and other agreements are fair market value. With heightened regulatory scrutiny and growing settlements, non-compliance liability exists in a proposed buyout merger. VMG Health can determine whether potential fair market value and non-compliance risks are present with a simple, two-phase due diligence process.
- Key Opinion Leaders
Healthcare entities often consult with physician thought leaders, also known as key opinion leaders. Key opinion leaders are engaged to provide their expertise in various supportive tasks, including writing abstracts and manuscripts, giving promotional or scientific speeches, supporting an investigational drug’s clinical development, supporting a brand’s promotion, and participating in or leading an advisory board. VMG Health verifies fair market value for these fees and ensures proper documentation for compliance purposes.
- Medical Directorships & Physician Executives
Medical directorships and physician executive roles require constant adaptation to an evolving regulatory landscape to ensure compliance and effective management. VMG Health offers expert guidance to help physician executives and medical directors stay current with regulatory changes and maintain compliance, ensuring their compensation and contractual arrangements are both fair and aligned with industry norms.
- On-Call Coverage
On-call coverage arrangements with physicians are essential in managing any emergency department or acute care hospital service line. With physicians’ increasing unwillingness to provide this service without compensation, various forms of compensated on-call coverage arrangements have emerged. VMG Health leverages our extensive experience and insight into on-call compensation trends to quickly confirm whether a physician’s on-call arrangement is at fair market value.
- Payments for Quality & Cost Savings
Value-based care arrangements, consisting of quality and cost savings goals, are a key alignment strategy hospitals and physicians use to adapt to the healthcare industry’s shift away from fee-for-service. These arrangements may be related to individual performance, hospital service line performance, or entire patient population or health system performance. VMG Health uses our extensive experience and insight into value-based care trends to guide our clients and swiftly determine whether a physician’s arrangement is at fair market value.
- Principal Investigators
Principal investigators are healthcare providers who are routinely engaged by healthcare entities for their experience and expertise in the technical and financial management of clinical research studies and trials. Principal investigators play a vital role in all stages and aspects of clinical research trials, including overseeing the grant application process, adhering to the financial plan presented in the proposal, and reporting progress to the project sponsor. VMG Health verifies fair market value for these fees and ensures proper documentation for compliance purposes.
- Professional Interpretation Arrangements
Healthcare facilities hire third parties for professional interpretations to address operational and financial needs. When structuring these arrangements, it’s crucial to clarify the expected services and billing responsibilities, and ensure compensation is set at fair market value. VMG Health’s extensive experience and insight into professional interpretation compensation allow us to quickly confirm whether arrangements align with fair market value.
- Recruitment Agreements
Recruiting qualified physicians is essential for the success of any hospital. Recruitment arrangements may involve offering financial assistance to relocating physicians or directly employing them, with incentives such as income guarantees, signing bonuses, relocation stipends, and student loan forgiveness. VMG Health can quickly determine whether a recruitment compensation arrangement meets fair market value.
- Telehealth
Telehealth and healthcare IT are dynamic and quickly evolving markets. As technology evolves, the healthcare industry must embrace the benefits of adopting effective healthcare solutions. VMG Health understands that the regulatory and reimbursement environment is slower to develop than telehealth and healthcare technology, which is why our experts are dedicated to accurately assessing fair market value for solutions and partnerships.
VMG Health offers proven valuation solutions for your organization to remain competitive and compliant.
Allow us to support your efforts as your organization attracts, retains, and motivates top medical talent while ensuring regulatory compliance and strategic alignment.
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