Healthcare Business Valuations

Carnahan Group a strategic healthcare firm

Healthcare Business Valuations

Carnahan Group has the ability and expertise to perform healthcare business valuations of your practice objectively and independently to arrive at a Fair Market Value (FMV).

There are many reasons to consider healthcare business valuations, including:

  • Sale/Purchase
  • Merger with another group or hospital
  • Buy-in of a new associate
  • Payout to a retiring partner

In order to perform healthcare FMVs, Carnahan Group will work closely with you to assist in collecting all the necessary documents to perform the due diligence while using our extensive proprietary and pertinent market research. We are able to coordinate interviews, perform site inspections, and review reimbursements among many other services. With Carnahan Group at your side, you can continue to focus on the day-to-day operations of your business.

Carnahan Group

As part of our Healthcare Business Valuations expertise,
Carnahan Group offers the following services:

  • FMV Opinions

    Carnahan Group is able to perform in-depth healthcare business valuations for entities and services; these FMVs are required for Stark/Anti-Kickback and other regulatory compliance that surrounds healthcare financial transactions.

  • Fairness Opinions

    A fairness opinion is a professional evaluation by an investment bank or other third party as to whether the terms of a merger, acquisition, buyback, spin-off or privatization are fair.

    A fairness opinion involves a total review of a transaction from a financial point of view. The financial advisor must look at pricing, terms and consideration received in the context of the market for similar companies. The advisor then opines that the transaction is fair, from a financial point of view and from the perspective of minority shareholders.

  • Asset Appraisals (supplies, workforce, medical charts)

    Carnahan Group performs this type of appraisal from a site visit or desktop appraisal, and can include tangible and intangible assets to be purchased. We specifically use the cost approach to produce a fair market valuation of all company assets, which can also be applied to lease arrangements (capital, operating, time-share, etc.).

  • Real Estate Appraisals

    We develop a Space Lease Analysis that includes a fair market value of the rental rate — full gross, modified gross and triple net leases. Carnahan Group also performs highly scrutinized time-share lease arrangements, as well as ground leases.

  • Consulting Services

    Our consulting services include Strategic Planning, Market Share Analysis, Transaction Advisory, Compensation Planning, and guidance in countless other areas.

  • Litigation Support

    Carnahan Group is equipped to defend its FMV opinions in all legal arenas. Revenue Ruling 59-60 defines “fair market value” as “the price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of relevant facts.”

  • Influencers on Valuation

    The above ruling stipulates that the following factors must be carefully considered in any valuation:

    • Intangible values such as goodwill
    • Financial ability to generate an ongoing income stream
    • Earnings capability
    • Type of business and financial and market history
    • Economic outlook for the industry in which the business resides
    • Fair market value adjustments of assets and rent
    • Physician productivity as it pertains to projected revenues
    • Fair market value of physician compensation

Our Physician Compensation Platform

Our proprietary data analyzes clinical, medical director, on-call coverage and academic compensation, historical factors, proposed hours, commercial reasonableness, total compensation, and more through FMVMD™.

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