Practice Valuation Service

• 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