Referral Source Compliance

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Principle Valuation provides fair market value (FMV) and commercial reasonableness support for regulatory compliance in all appraisal disciplines.  Clients rely on our expertise to meet the strict standards imposed by the Stark Law and Anti-Kickback Statutes.

Services provided include:

  • Valuation of the business enterprise of physician practices and joint ventures
  • Valuation of specific assets of physician practices including medical records, assembled work force, trade names and furniture and equipment
  • Compensation studies including an analysis of the fair market payment for services rendered including variable pay based on the level of production
  • Compensation studies related to hospital-based coverage arrangements including Medical Directorships and call coverage
  • Fair rental studies of real estate and equipment
  • Fair market value of Management Agreements
  • Valuation of Provider Service Arrangements (PSA) to substantiate FMV payouts.

Healthcare organizations turn to us for referral source compliance reports 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

Projects

  • Business enterprise valuation of a 15-physician pediatric practice for potential acquisition by a hospital system, including the analysis of compensation and a “black box” analysis of the insurance plan rates for the practice versus the hospital
  • Stockholders’ equity valuation of a surgery center owned as a joint venture between physicians and the hospital system for potential purchase by the hospital system
  • PSA valuation of ED staffing arrangement providing staffing and system ED Director to regional hospital system

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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

Contact

190 South La Salle Street, Suite 2900
Chicago, IL 60603
312.422.1010
info@principlevaluation.com