Valuation Issues for ASCs and Hospitals
More Evidence of a New Lithotripsy Landscape
On July 30, 2008, CMS issued its final rule regarding the Hospital Inpatient Prospective Payment System (IPPS). CMS elected to allow healthcare service providers until October 1, 2009 to restructure or unwind certain current arrangements that were impacted by the final rule. Those following the developments leading up to and following IPPS (aka Stark III) may recall the significant discussion surrounding lithotripsy services. Industry participants have somewhat universally agreed that in January 2009, CMS cleared the way for the continuation of per click lithotripsy services arrangements (through this FAQ #9556 response found at http://questions.cms.hhs.gov/app/answers/detail/a_id/9556). The discussion surrounding these arrangements should have signaled to those involved that the Office of the Inspector General (OIG) was aware of the potential abuses involved in the provision of lithotripsy by physician-owned companies.
Read more...Healthcare Fraud Investigations Increase; Greater Caution Urged in ASC Share Sales to Physicians; 22 Dos and Don'ts on Selling ASC Shares
The oversight and scrutiny of physician hospital and physician provider transactions and relationships has increased tremendously over the last few years. Scott Becker, JD, CPA, partner at McGuireWoods, discusses two legal trends affecting the relationship between surgery centers and physicians — and how ASCs can reduce the risk that transactions between the center and its physician investors will be investigated.
Read more...Can Your ASC Benefit from a Loan Guarantee Arrangement?
Loan guarantees are powerful tools that can be used to finance businesses that involve a partnership with physicians, provided that there is fair market value (FMV) compensation paid for the value of services received. As recent economic turmoil has led to a tightening of credit markets, financing is becoming an ever more crucial component to develop and maintain successful healthcare businesses. This brief article introduces the concept of the loan guarantee, its use in the healthcare industry and approaches to determining the FMV of loan guarantee fees.
Read more...Critical ASC Mistake: Accepting Highest Bidder but not Best Long-Term Partner
Kevin McDonough, senior manager at the Dallas office of VMG Health, discusses why an ASC looking for a partner shouldn't base its decision solely on who is offering the most upfront money.
Read more...Novant's CON for North Carolina ASC Challenged by Three Parties
The certificate of need received by Novant Health to build an ASC in Holly Springs, N.C., is facing challenges from the three parties the organization beat out to receive the CON, according to a Triangle Business Journal report.
Read more...25 New ASCs Opened or Announced in 2010
Here are stories on the openings of or plans for 25 new surgery centers announced in 2010.
Read more...10 Current Topics on ASC Valuation Issues
Here are 10 current topics on ASC valuation issues. Read more...Olean General Hospital in New York Receives Funding for New ASC
Olean (N.Y.) General Hospital will receive $23 million to build an ASC and refinance debt, according to Olean Times Herald report.
Read more...Iowa's Fox Eye Surgery Denied ASC CON by Court of Appeals
Fox Eye Surgery in Iowa had its application for a certificate of need to build an ASC denied by the Court of Appeals of Iowa, according to legal documents on Leagle.com.
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