HealthCare Appraisers Sets FMV Payment Amount for Co-Management of Michigan Hospital's Service Line

HealthCare Appraisers developed the fair-market-value (FMV) total payment amount for the physicians involved in the co-management of a clinical service line at St. John Providence Health System in Warren, Mich., according to a report from Crain's Detroit Business.

St. John Providence and physicians have a 50-50 ownership of the hospital's cardiovascular service line — operated under the name St. John Cardiovascular Co-Management Co. — and share in the management.

HealthCare Appraisers developed the FMV payment for the physicians if they meet specific targets.

"Based on the performance and tasks performed, we gave (St. John Providence) a two-year opinion with an annual dollar amount that included base pay and incentives," said Ann Brandt, PhD, senior director with HealthCare Appraisers, in the Crain's Detroit Business report. "(St. John) can pay anything up to that amount."

Read the Crain's Detroit Business report about the St. John Providence co-management agreement and the involvement of HealthCare Appraisers.

Read more from HealthCare Appraisers:

- 5 Valuation Pitfalls in Surgery Center Operating Agreements

- 3 Frequently Asked Surgery Center Valuation Questions

- Valuing Physician Practices: Providing Clarity Amidst a Sea of Uncertainty

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