Fair Market Valuation
Ensuring Compliance and Establishing a System for Continuous Risk Avoidance
Whether renewing existing agreements or entering into new agreements, it is incumbent upon the organization to ensure each arrangement is designed to be commercially reasonable and consistent with fair market value. Doing this can avoid long-term financial and legal risks. Verity's differentiation is based on our belief that the process of valuation must be simple, quick, and cost-effective.
We believe that our clients most benefit from our services because we deliver expedited and reliable opinions. In addition, our team of experts brings deep knowledge of hospitals and healthcare systems; and we work hard to leverage our experience to understand the unique circumstances of your organization.
Our data resources include the market's most current provider compensation, productivity and cost data sources, but go further to include timely proprietary data that supports all types of physician compensation arrangements.
Verity also supports its clients by developing and implementing best practices for reviewing physician compensation arrangements. We work with clients to develop the necessary tools that help them maintain competitive compensation arrangements and stay continuously compliant.
Verity's Fair Market Valuation Approach
Verity's determination of commercial reasonableness is based on research of available coverage and guidance and requirements from the United States Department of Health and Human Services (HHS), the United States Center for Medicare and Medicaid Services (CMS), the office of Inspector General (OIG), and industry practice.
- Review clinical integration strategies
- Reference community need data
- Analyze the proposed compensation model
- Evaluate other relevant information related to the coverage and compensation
Verity applies the definitions of fair market value according to the Federal physician anti-referral laws and regulations (i.e. Stark Law) and the Internal Revenue Service in their fair market valuation opinions. Verity relies on the market method, the cost method and the income method for determining fair market value.