A recent article by PYA Principal Angie Caldwell has been published in the winter edition of Neurosurgery Market Watch™. “Understanding Fair Market Value Compensation and Commercial Reasonableness” outlines the important considerations of fair market value (FMV) and commercial reasonableness (CR) in financial relationships. It also highlights scenarios in which arrangements may not be compliant with regulatory requirements, resulting in potentially damaging consequences.
Article Excerpt:
Generally speaking, transactions between potential referral sources must be consistent with both FMV and CR. An analysis of a transaction may determine that it is FMV but not CR, or vice versa, at which point the transaction would be non-compliant. All types of healthcare providers—physicians, advanced practice providers, imaging providers, pharmaceutical and device manufacturers, hospitals, home health agencies, and skilled nursing facilities, among others—are affected by FMV and CR.
Read the full article reprinted by permission from Neurosurgery Market Watch, Winter 2019, accessible here.
If you would like more information about how PYA assists with neurosurgery or other healthcare-related compensation structures, or would like assistance in any matter involving compliance, valuation, or strategy and integration, contact one of our PYA executives below at (800) 270-9629.
