Ongoing Practice Management Services


  • Conduct an analysis of the following to arrive at a fair market value of the medical practice:  Review all charge, adjustment and payment information, by payor
  • Review accounts receivable data
  • Analyze all managed care contracts
  • Analyze financial statements and related ledgers
  • Establish physician-related expenses
  • Review of practice procedure analysis
  • Analyze lease agreements
  • Review office procedures
  • Assess clinical position of the practice
  • Review appropriateness of coding
  • Review practice's patient mix and volume
  • Review practice's depreciation schedule
  • Inventory equipment and supplies
  • Coordinate real estate appraisal, if applicable
  • Develop a ten year valuation utilizing the discounted cash flow method based on the following:
  • Projected volume, by procedure category and payor, for each year
  • Projected gross charges and collections, by procedure category and payor
  • Projected expenses related to the volume projected for each year
  • Projected capital outlay each year based on prior years' activity and projected volumes
  • Ten year cash flow statement
  • Prepare a discounted accounts receivable schedule based on the practice's collection history
  • Prepare a practice operating indicator report comparing the practice with Industry Standards
  • Review the final report with Physician
  • Assist physician with negotiations. The valuation is an important tool in determining buy/sell agreements with future associates, retirement transition issues, group merger decisions and offers from third parties to acquire a practice