The explosion in healthcare transactions after a tenyear hiatus has created a booming market for appraisal and valuation services. One of the peculiar aspects of the healthcare industry is that many if not most transactions must be supported by an independent appraisal due to
governmental regulatory concerns. As such, failure of appraisers or valuation analysts to understand healthcare markets and government regulations can lead to transactions taking place at prices inconsistent with both economic reality and regulatory parameters. These transactions can then find their way into databases relied upon by other appraisers, resulting in further transactions based upon suspect opinions of value.