Fair Market Value of Lithotripsy Services Agreements

Hospitals and ambulatory surgery centers often elect to contract with a third party for the provision of certain lithotripsy services. Typically, these agreements are structured on a per procedure basis and the services provided are extracorporeal shock wave lithotripsy (“ESWL”) and/or laser lithotripsy. ESWL is a non- invasive procedure that uses targeted high intensity acoustic pulses, or shockwaves, generated by a lithotripter machine to break up kidney stones so that they can be more easily passed through the patient. Laser lithotripsy is also a non-invasive procedure that uses a ureteroscope and laser to break up the kidney stones. These procedures tend to be performed on an outpatient basis and can be provided in several formats: fixed site, transportable, and mobile. When structuring these agreements, it is imperative to understand the expected services to be provided and the fee structures.

How We Help

  • It is common for the third-party lithotripsy provider to have physician-ownership or a physician affiliation; therefore, compensation for the services should be set at fair market value.
  • Acquiring a fair market value opinion can ensure regulatory compliance, assist clients without experience in valuation, and provide both parties with comfort that the agreement is consistent with fair market value.
  • Our team has valued over 100 lithotripsy agreements and VMG has an extensive database to allow for proper benchmarking with future cases.
  • We continue to interview numerous industry professionals to understand underlying cost structures that come with lithotripsy.
  • In addition, we have experience valuing similar equipment-based arrangements between facilities and providers.