Valuation Services Fair Market Value for Healthcare

Healthcare Valuation Services

Healthcare leaders need timely, relevant, and reliable analysis to support their business decisions. Root Valuation, a division of Root Partners, works closely with health system executives, physicians, health lawyers, and business owners to understand their goals and objectives and identify key value drivers and risks within a subject business or service line.

We provide actionable and compliant valuation solutions to a broad spectrum of transactional needs, including these:

Valuation for business transactions
Fair market value (FMV) opinions for physician and administrative compensation
Management services agreements
Assessment of economic damages in legal disputes
Strategic value consulting

The appraisal experts of Root Valuation have over 50 years of combined experience focused exclusively on healthcare engagements. The issues involved in healthcare valuation are driven by a complex regulatory environment, highly varied reimbursement models, and unique operating structures. Failure to understand these details can have a huge financial impact, and we believe our clients deserve valuation advisors who are laser-focused on this space.

Call (888) 464-8175 or contact us online today.

Healthcare Business Valuation Services

Business valuation determines the overall economic value of an organization or its specific assets. This process employs methodologies like the income approach (e.g., discounted cash flow analysis), market approach (examining comparable transactions), or asset-based approach.

Key factors influencing business valuation in healthcare include:

Revenue streams
Payer mix
Operational efficiency
Regulatory compliance
Market competitiveness

For instance, a valuation might assess how hospital-specific metrics such as bed utilization rates and specialty services influence profitability and overall worth.

Your goals matter to us. At Root Partners, we work directly with our clients’ valuation needs to ensure their business transactions run as smoothly as possible. Reach out to us regarding valuation matters for your:

Mergers & Acquisitions
Shareholder Transactions
Intellectual Property Licensing & Acquisition
Certificates of Need
Ancillary Carve-outs
Joint Ventures

Appraisal Review Services

Selling a business is a time consuming and costly endeavor, and for many business owners, a once in a lifetime event. If you or your organization has been presented with an appraisal that doesn’t seem right, or you just want to validate an opinion of fair market value, we are here to personally review all the information and provide our expert insights. Don’t leave money on the table, let Root Partners give you the peace of mind that your transaction is priced fairly. Schedule a consultation with us today to get started.

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Smart Healthcare Advisory. Reliable Knowledge.

Our Values Inform Our Approach

Root Partners levels the playing field for healthcare providers with expert transaction advisory services, ensuring seamless, strategic, and successful deals.

Do What's Right

We believe in honesty and integrity, stewardship and accountability to our clients, our staff, and the communities we serve.
Solution-Oriented

We help clients find objective, defensible solutions for transactions and financial arrangements involving the Stark Law and Anti-Kickback Statute.
Constant Learning

We maintain deep expertise through ongoing education, research, and active involvement in healthcare trade organizations.
People First

We prioritize the human element in everything we do, acting with kindness, respect, and appreciation in our interactions.

Compensation Valuation Services

Compensation valuation assesses whether a healthcare provider's pay aligns with FMV and commercial reasonableness. This is often essential for compliance with laws such as the Stark Law and Anti-Kickback Statute, which regulate financial relationships between providers and referral sources.

Compensation valuation analyzes provider productivity data, regional benchmarks, and industry standards. It involves metrics like total work relative value units (wRVUs) for physicians, collections, and hours worked. For example, ensuring a physician’s salary for a medical director role complies with FMV helps safeguard against legal risks and promotes ethical practices.

Defensible Solutions for Evolving Compensation Models

Aligning physicians and other healthcare providers is vital to the success of healthcare organizations. With an ever-changing regulatory landscape and constantly evolving compensation models, it is critical to support compensation arrangements with well-reasoned, defensible, and actionable fair market value (FMV) opinions.

At Root Partners we don’t provide canned opinions or survey-based calculators. Instead, we work diligently to understand our client’s alignment goals, the regulatory guardrails pertinent to the arrangement, and the true market-based value drivers underpinning the compensation arrangement. Most importantly, we work collaboratively to educate all parties involved to build consensus and facilitate a successful and compliant outcome.

Fair Market Value in Clinical Compensation

In an ever-changing regulatory and competitive environment, clinical compensation models should be continually evaluated to remain attractive to providers, commercially reasonable, and compliant. Root Partners does not take a one-size-fits-all approach to clinical compensation. Instead, we consider both quantitative and qualitative measures that truly drive fair market value.

Clinical compensation engagements include:

Physician and APP employment
Professional services agreements (PSAs)
Subsidies and stipends
Call coverage
Medical directorships

Administrative Compensation

Strategic alignment across the healthcare continuum is a driving force behind improved outcomes and reductions in the cost of care. With the ongoing evolution of payor models, value based enterprises, healthcare technologies, and novel services models, the need for innovative and dynamic valuation models has never been greater.

At Root Partners , we pride ourselves on being a solution-driven appraisal firm providing defensible and well-reasoned FMV opinions across an ever-changing landscape of administrative pay models.

Examples include:

Physician executive and administrative pay
Pay for performance and value-based compensation
Management services agreements (MSAs)
Clinical co-management and hospital quality and efficiency programs (HQEP)
Care coordination and management
Healthcare technology platforms / novel care delivery models

Compliance Testing and Appraisal Review: Ongoing Support and Validation

Keeping your compensation models consistent with FMV is an ongoing process. Root Partners is here to help, with ongoing testing and review processes that can help your organization proactively monitor compensation. Our objective is to ensure compliance before a problem arises.

If your organization has received a healthcare valuation that doesn’t quite seem right, we are here to personally review all the information and critique previous work. We want you to have a clear understanding of our opinion on the appraisal and our suggestions for your next steps.

We work with clients across the United States—from California to Texas to Florida—who need a sound valuation of their practice. We are credentialed members of the American Society of Appraisers (ASA) in Business Valuation and the National Association of Certified Valuators and Analysts (CVA) in Business Valuation.

Call our office at (888) 464-8175 to schedule a consultation.

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For Hospitals, Health Systems, Physicians, & Health Lawyers Resources & Insights Recent Articles & Presentations

We’ve compiled valuable resources to simplify your search for solutions, including FAQs, presentations, and articles.

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We Know Our Clients By Name Who We Serve Trusted Valuation and Transaction Advisory Services

Root Valuation provides tailored valuation and advisory services to healthcare organizations nationwide, with flexible fees to ensure compliance and stay within budget.

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Your Trusted Transaction Advisory Firm Why Choose Us What Sets Root Partners Apart?

Our mission is to offer a unique experience through a consultative approach and a business ethos grounded in our four core values.

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Serving Healthcare Organizations Nationwide

Almost 20 Years In the Industry

Fair Market Value Analysis

Experience You Can Trust

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