Determining the Fair Market Value of Medical Practice Assets

Carnahan Group is a top-notch healthcare valuation firm that has the ability and expertise to perform healthcare business valuations of your practice objectively and independently to arrive at the Fair Market Value of medical practice assets.

Our team of business valuations experts is here for you. We focus on valuations that are solely in the healthcare industry and offer top-notch guidance throughout the process.

In order to perform healthcare FMVs to determine the fair market value of medical practice assets, hospitals, and more, 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.

Learn more here: Business Valuations Flyer 2022

As part of our unmatched 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. Determining the fair market value of medical practice assets and hospitals is 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.

• Hospital Valuation

  Carnahan Group is able to perform in-depth valuations of hospitals; these valuations are required for Stark/Anti-Kickback and other regulatory compliances that surround healthcare financial transactions. Carnahan Group specifically uses the income and/or cost approach to produce a fair market valuation of the entire hospital. These typically include real estate, FF&E, AR, and workforce. These can be used to determine the lease value of a hospital as well.

• Real Estate Appraisals

  We provide a complete valuation of your healthcare real estate assets, either encumbered by lease or unencumbered. This frequently includes ground leased sites, mastered leased buildings, office condominiums, radiation oncology centers (including proton therapy centers), dialysis centers, hospitals, and other specialty real estate assets. FMV asset valuations are required for mergers or acquisitions, acquisitions of physician practices with real estate, or joint ventures with a specialty practice.

• Timeshare Agreement

  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 performs this type of appraisal from a site visit or desktop appraisal and can include tangible and intangible assets to be leased in the space. We specifically use the cost approach to produce a fair market valuation of all exclusive and shared space, FF&E, expenses, and workforce associated with the space.

• Space Lease Agreement

  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 ground leases.

• Operating/Capital Lease

  Carnahan Group performs this type of appraisal from a site visit or desktop appraisal and can include tangible and intangible assets to be leased. We specifically use the cost approach to produce a fair market valuation of all company assets in the form of a operating and/or capital lease.

• Medical Practice Valuation

  Carnahan Group is able to perform in-depth valuations of healthcare entities and services to determine the fair market value of medical practice assets. These valuations are required for Stark/Anti-Kickback and other regulatory compliances that surround healthcare financial transactions.

• Medical Practice Appraisal

  Carnahan Group performs this type of appraisal from a site visit or desktop appraisal, and can include tangible (FF&E, AR, charts) and intangible assets (workforce) to be purchased. We specifically use the cost approach to produce a fair market valuation of all company assets.

• Opinion Letter

  Carnahan Group creates opinion letters and reviews the methodology/analyses that do not fit into typical compensation reports or up to the discretion of the valuator.

• 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