10 myths of healthcare business valuation.
*Acceptance of common myths regarding business valuations can undermine a hospital's efforts to successfully negotiate deals with physicians. *Hospitals need to clearly understand the nature of fair market value (FMV), the use of multiples, the "guideline company technique," whether the FMV can be based on acute care revenue stream, the physician compensation model used in the valuation, and the applicability of the physician's historical production level. *Other matters that warrant careful consideration include whether to tax effect, whether to pay for goodwill, and whether obsolescence can be accounted for in the valuation.
Robeson
J David
JD
DGA Partners, Bala Cynwyd, Pennsylvania, USA. DRobeson@dgapartners.com
Kaplan
Karin Chernoff
KC
D004465:Economic Competition / Q000191:economics; D004469:Economics, Hospital; D005375:Financial Audit / Q000592:standards*; D018578:Hospital-Physician Relations; D006801:Humans; D017008:Negotiating