Becker’s Hospital Review recently published an article by PYA Consulting Manager Kathryn Culver. The article, “The Conflict Between Post-Acquisition Compensation and the Value of Your Medical Practice,” explores the inverse relationship between post-acquisition compensation and the value of a medical practice. It also emphasizes the importance of evaluating the practice’s incurred operating costs when determining such compensation.
“When valuing the practice, normalization adjustments to compensation should reflect a post-transaction compensation that is consistent with fair market value, regardless of whether compensation, or the ‘business enterprise value’ of the practice, will be higher or lower.”
Becker’s Hospital Review features up-to-date information and legal news and analysis for leaders in the healthcare industry. Read the full article here.
If you would like more information about post-acquisition compensation, medical practice valuation, or physician compensation analysis, or would like to request a speaker on these topics for your organization or event, contact one of our PYA executives below at (800) 270-9629.