Healthcare is one of the most vastly regulated businesses in the country. Furthermore, there seems to be uncertainty about fair market value (FMV) as it relates to healthcare. Let’s examine the role that FMV plays in healthcare and why it’s needed.
The Exchange Of Services
Whenever there is anything exchanged of value within the healthcare industry, (i.e., healthcare providers, physicians, medical personnel) and a non-profit business, organization, or a third-party, an FMV tool may be needed. Additionally, the value of the exchange may need to be at fair market value. If it isn’t, then certain parties may face repercussions.
According to data, an American user of the anti-cancer drug Avastin will pay 10 times as much for the drug here in the United States compared to a user of the drug in the United Kingdom. Regardless of the price, the exchange has to be regulated and an FMV tool has to be implemented for that treatment.
Government Healthcare Reimbursement and FMV Tools
While healthcare FMV helps to regulate operations, FMV tools are seen as valuable entities that protect consumers. Non-profit health care institutions are required to accept payments from government programs. These include both Medicaid and Medicare. Healthcare providers must be careful that payments to Medicaid, Medicare, and other government programs are at fair market value. An FMV tool should be used to ensure that FMV was utilized.
If it is found that fair market value of medical practices and procedures were not used, those healthcare providers could be excluded from Medicare, Medicaid, and other government programs designed to assist certain populations in the United States.
Why Is FMV Important for You and Your Healthcare?
The utilization of an FMV tool for you and your healthcare needs is vital to your protection as a consumer. Doctor or physician transactions are regulated by federal law. Additionally, there are a vast number of state-specific mandates and statutes in place for FMV. Government agencies are always on the lookout for healthcare institutions that do not offer fair payment practices to patients.
The transactions and activities of many doctors that are in private practice as well as those doctors that are employed by specific health care systems can be impacted by an FMV tool and government regulations. There are many protections in place for healthcare companies that look to deviate from FMV and the FMV tools that are in place. For example, there are entities that prohibit doctors from referring Medicaid and Medicare patients for particular health services. While exceptions can be made, there has to be substantial proof to show such.
For the most advanced FMV tools and assistance you need, your Tampa, FL healthcare technology and consulting group is here to assist. We understand that there is a crucial need for better, faster, more cost-effective, and advanced solutions for the restoration of healthcare’s objective: to give back to those who heal and the communities that the healers serve.
Let us help you understand the importance of an FMV tool while also helping you solve healthcare’s business challenges with the latest technological tools and advising services. As an innovative, transparent, and accredited entity, we’ll focus on better management for you and your healthcare business while you focus on running a regulated healthcare company that serves the needs of others.