What to Consider When Choosing a Valuation Specialist
When choosing a medical practice valuation specialist, there are criteria that you should require to assure that you receive the best possible valuation for the purpose you intend to use it.
1. Choose a professional with experience specifically in medical or physician practice valuation. A realtor and an accountant may be able to provide you with an appraisal of the practice’s fair market value but a professional with experience in managing the financial aspects of a medical practice will also take into account profits (rather than mere collections), Stark, corporate practice of medicine prohibition laws, Medicare Fraud and Abuse, and Fee Splitting laws.
2. Choose a professional that understands medical language, healthcare practice, data integrity, and the basics of healthcare information technology. The professional should also supply credentials attesting to that expertise.
3. Choose a professional with experience in medical practice valuation using the three approaches recognized by the IRS: asset-based approach, the market approach, and the income approach. For instance, you may need a valuation based on whether it is needed in an action for divorce, a case in which a partner intends to retire, a case of selling the practice to or merging with a larger entity such as a hospital, or in a case in which you may be applying for a loan.
4. Choose a professional who is a member in good standing with such professional associations as the American Society of Appraisers, Best Lawyers in America, Healthcare Financial Management Association, and/or National Association of Certified Valuation Analysts (NACVA).
5. Choose a professional that will provide you with a full report of all the data, resources, analysis, and assumptions used to arrive at the valuation with which you’re provided. You should be able to substantiate or verify the data used in the report.
Christopher Evans provides you with such qualifications so that you can be assured that your valuation is completed accurately, expertly, and with the utmost integrity.
Contact Christopher Evans today to begin your medical or physician practice valuation.