Valuing Physician Practice Ancillary Services: Overcoming Challenges for Healthcare Counsel

Recording of a 90-minute CLE webinar with Q&A


Conducted on Tuesday, May 14, 2013

Recorded event now available

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Program Materials

This CLE webinar will prepare healthcare counsel to value physician practice ancillary services and review the pitfalls of valuation. The panel will offer best practices for addressing and overcoming the challenges of valuing ancillary services.

Description

With the increased focus on improving patient care, managing costs, and reduced third-party reimbursements, healthcare providers are seeking ways to cut and share expenses. Joint ventures, co-management arrangements, ACOs and other hospital and physician transactions are some of the ways to achieve these goals.

Acquisition of physician practice ancillary services, such as clinical lab services, MRIs and physical therapy, are often part of hospital and physician transactions. While these ancillary services may be a key aspect of the acquisition, healthcare providers and their counsel must understand when and how valuation of a practice ancillary is appropriate, as well as the common challenges and solutions in valuing such services.

Listen as our authoritative panel of healthcare attorneys and advisors discusses the valuation of practice ancillaries, including methodologies and a look at both customary and atypical ancillaries. The panel will examine pitfalls often encountered in the valuation process and offer best practices for overcoming those challenges.

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Outline

  1. Valuation of practice ancillaries
    1. When is it ok to value practice ancillary business separately?
    2. "Customary" ancillaries vs. "atypical" ancillaries
    3. Overview of valuation methodologies
  2. Ancillary valuation pitfalls
    1. Lack of adequate financial data (allocation of P&L, no balance sheet)
    2. Measuring business risk
    3. Forecasting ancillaries apart from professional practice
    4. Separation of ancillaries necessarily separates comp from BV exercise
    5. Consideration of HOPD rates in valuation
    6. Regulatory risk—if there is only one utilizer of equipment, does direct valuation of ancillaries equate to valuing referrals?

Benefits

The panel will review these and other key questions:

  • When is it permissible and appropriate to value physician practice ancillary services separately?
  • What are the challenges often encountered when valuing ancillary services?
  • What valuation models should be used and what assumptions should be avoided?
  • What steps can counsel take to avoid common valuation pitfalls?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

Jason Ruchaber, CFA, ASA
Jason Ruchaber, CFA, ASA

Partner
HealthCare Appraisers

He heads the firm’s Business Valuation Services. He has more than 14 years of finance and valuation experience,...  |  Read More

Roger D. Strode
Roger D. Strode

Partner
Foley & Lardner

He focuses on health care business transactions, including mergers, acquisitions, corporate restructurings and the...  |  Read More

Other Formats
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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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