Physician Compensation and Service Arrangement Studies

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As regulation gets tighter and compensation agreements become more complex, these arrangements get more scrutiny from the regulators.  Principle Valuation provides a full-service analysis of compensation arrangements.  We can help you understand the intricacies of these arrangements to ensure that they meet the strict regulatory requirements of Stark Law and the Anti-Kickback Statutes.

Principle Valuation provides independent and objective valuation services for compensation and services arrangements, including:

  • Professional Service Arrangements (PSA)
  • Employment agreements
  • Independent contractor arrangements
  • Physician on-call coverage arrangements
  • Medical directorships
  • Income guarantee arrangements
  • Joint venture arrangements
  • Real estate and equipment lease arrangements/Fair market rent analysis

Healthcare organizations turn to us for physician compensation studies because:

  • They trust that our studies will be accurate and fair, and will be performed in a timely manner
  • Our studies are performed by professionals with specific expertise in a wide variety of physician compensation requirements


  • Compensation study –analysis of 14-physician cardiology practice under two-tier compensation structure under several break-even Stark compliant scenarios
  • PSA study – valuation of ED staffing arrangement that provides staffing and system ED Director to regional hospital system
  • Fair market rent analysis – analysis of the lease arrangement for provision of space and equipment utilization for MRI suite for a regional hospital

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Our clients have used Principle Valuation for valuations for purchase and sale transactions, compensation relationships, and support for tax purposes. They do straightforward and intelligent work, and are very responsive.

Scott Becker, Partner, McGuire Woods

We selected Principle because of their experience and reputation in the market. They are very knowledgeable about the industry, and particularly HUD financing. They were very thorough and hit their deadlines. Their appraisal went through HUD with no issues, which also made the borrower very happy.

Ken Buchanan, Senior Vice President and Chief Underwriter (Eastern Region), Walker Dunlop

Principle Valuation provides excellent valuations for ongoing healthcare enterprises, as well as placing values on the individual assets. They are very timely, reliable, have a solid understanding of the regulatory implications of their work, and are authoritative in the way they present their information.

Mike Anthony, Partner, McDermott, Will & Emery

Principle Valuation is far superior to any other valuation firm we have worked with. They are knowledgeable about businesses, real estate and equipment. And their reports are always right the first time.

Ken Doran, President and CEO, Spectrum Heatlh Partners


190 South La Salle Street, Suite 2900
Chicago, IL 60603