What does “fair market value” mean in physician compensation?

Fair market value (FMV) represents the compensation that would be paid between a willing buyer and seller, neither under compulsion, both knowledgeable of the relevant facts. In healthcare, FMV ensures payments reflect legitimate business considerations without influencing clinical decision-making.

Why is FMV analysis critical for healthcare organizations?

Healthcare organizations must demonstrate that physician compensation arrangements are consistent with FMV and commercially reasonable to comply with federal laws such as the Stark Law and Anti-Kickback Statute. A proper FMV analysis protects both the organization and its providers from regulatory and financial risk.

What types of compensation arrangements require FMV opinions?

FMV opinions are essential for arrangements such as medical directorships, call coverage, employment agreements, management services, and co-management relationships. Each requires specialized valuation to confirm compliance and fairness.

How does PYA conduct physician compensation valuations?

PYA’s multidisciplinary valuation team applies professional judgment—supported by market data, benchmarks, and deep healthcare knowledge—to each engagement. Rather than simply calculating a number, PYA forms an informed opinion of fair market value based on human analysis of all relevant facts and circumstances. Every opinion reflects thoughtful consideration of both compliance and real-world market dynamics.

What distinguishes PYA’s physician compensation services from other firms?

PYA’s difference lies in its human intelligence and professional touch. Our experts combine decades of valuation experience with a hands-on review of every engagement, ensuring each FMV opinion reflects both technical rigor and market insight. As a privately owned and fiercely independent firm, we answer only to our clients—helping healthcare organizations structure compliant, practical, and patient-centered compensation arrangements.

Fair Market Value (FMV) Opinions for Healthcare

Defensible FMV Opinions, Delivered with Speed and Accountability

Healthcare organizations need fair market value (FMV) opinions that stand up to scrutiny. PYA provides independent, third-party FMV and commercial reasonableness opinions designed to support compliance with Stark Law, the Anti-Kickback Statute, and related regulatory requirements.

PYA ClearView^TM FMV combines AI-enabled analysis with expert-led valuation review. Technology supports research, organization, and consistency, while PYA valuation professionals form, issue, and defend each opinion of value.

ClearView FMV | Technology-Enabled, Expert-Led FMV Analysis

ClearView FMV uses structured data intake and standardized valuation frameworks to support efficiency and consistency. This approach allows PYA to deliver opinions in a compressed timeframe while maintaining analytical rigor.

Each opinion is reviewed and adopted by experienced PYA valuation professionals. The conclusion reflects professional judgment based on the specific facts, responsibilities, and expectations of the arrangement. Every engagement includes a documented methodology and complete work file designed to support audit, board review, or regulatory inquiry.

How ClearView FMV Works

ClearView FMV follows a structured workflow that combines AI-assisted data organization with expert-led valuation analysis. PYA professionals define the valuation question, evaluate relevant market data, apply adjustments, and reconcile the results into a defensible opinion supported by documentation and review. Each opinion is issued by PYA valuation specialists who stand behind the conclusion.

Fair Market Value Methodology Built for Regulatory Review

Independent Opinion

Each FMV opinion is issued by PYA valuation professionals who review the facts, apply judgment, and adopt the conclusion as their own. The opinion is issued by PYA and supported by a documented work file.

Opinion of Value

A defensible FMV conclusion is more than a benchmark or calculated output. It is a reasoned determination based on the specific facts and circumstances of the arrangement, supported by methodology and documentation.

Built for Scrutiny

Our methodology, assumptions, and conclusions are documented with the expectation of external review. Each opinion is supported by a work file suitable for audit, investigation, or litigation.

Structured, Consistent Process

Standardized workflows and valuation frameworks support efficiency and consistency across engagements while maintaining analytical rigor and control.

Broad Arrangement Experience

PYA supports a wide range of healthcare arrangements including employment, professional services, call coverage, medical directorships, co-management, and alternative compensation models.

Commercial Reasonableness Support

We evaluate whether arrangements serve a legitimate business purpose and make sense independent of referrals, supporting a complete compliance record.