Healthcare Valuation Blog

We ranked the 30 largest healthcare services and information technology deals of 2018, according to our database, by valuation multiple....

For those of you who’ve been involved in a transaction where the only asset transferred is a certificate of need, you’ve probably found...

On Monday, December 3, 2018, the Department of Health and Human Services (HHS) – in collaboration with the Departments of the Treasury and Labor, the Federal Trade Commission, and several offices within the White House – released a report detailing recommendations for improving choice and competition in the healthcare industry. The report identifies areas where the Administration believes federal and state rules restrict choice and competition. It also identifies actions the

One of the questions we get asked a lot is how valuations have changed over time. While we usually answer this question with only anecdotal evidence, here we’ve tried to answer it with data. There are a couple of issues with doing this type of analysis: Finding a large enough sample for each year Ensuring the relative comparability of the sample used from year to year Where possible, adjusting for other key factors that influence the valuation multiples, such as size In or

One of the many benefits of tracking healthcare transactions closely and maintaining a very large database of deals where we can get reliable price to EBITDA and revenue multiples is that it provides insight into profit margins for segments where other financial benchmarking information is sparse. Starting with this sample of healthcare transactions where financial terms were disclosed publicly, we eliminated general acute care hospitals and physician practices since they ty

The most important component of a valuation of an accountable care organization (or other multi-provider network that relies on risk-based shared savings models) is the revenue forecast, which involves “probability-adjusting” future shared savings payments in some manner. Under the Medicare Shared Savings Program (MSSP), an ACO that meets its minimum savings rate (MSR) is entitled to a percentage of the total savings below its financial benchmark, which typically amounts to

CMS' offers a helpful online tool that shows provider market saturation levels at the national-, state-, and county-levels for the following health services: Ambulance (Emergency, Non-Emergency, Emergency & Non-Emergency) Cardiac Rehabilitation Programs Chiropractic Services Clinical Laboratory (Billing Independently) Federally Qualified Health Centers Home Health Independent Diagnostic Testing Facilities (Part A and Part B) Hospice Long-Term Care Hospitals Ophthal

Earlier this year, radiation therapy provider SightLine Health reached a $11.5m settlement with the DOJ in a lawsuit alleging it knowingly violated the federal physician self-referral and anti-kickback laws. Financial Arrangement According to the complaint, SightLine’s operating model was to build a radiation therapy center in a new market, and “syndicate” ownership of the center among referring physicians (primarily urologists). Sightline would keep 20% ownership of the JV

One of the things we track closely is fairness opinions that get filed with the SEC when a public company gets taken private. It's always...

CMS released performance year 2017 results in August for the Medicare Shared Savings Program (MSSP). It was definitely a big year for...

As we wrote last week, larger healthcare services companies generally fetch higher valuation multiples – i.e. the purchase price...

One of the things we often discuss with our clients is the impact of the size of a healthcare services organization on its valuation....

A common assignment for a health care valuation consultant is to review a proposed employment agreement between a hospital (employer) and...

According to our review of current GSA price lists, the average cost of a locum tenens physician is approximately $1,700 per day compared...

On March 7, 2018, the Department of Justice announced that a hospital and a physician group will pay $20.75 million to settle allegations of kickbacks and Stark Law violations. The case started with a qui tam lawsuit filed by Dr. Tullio Emanuele, a cardiologist once employed by the group.[1] In an amended complaint filed November 30, 2012, Dr. Emanuele alleged that his former employer, Medicor, a private practice of cardiologists and internal medicine physicians, entered into