HLW Article

Evaluating RVU-Based Compensation Arrangements

Relative Value Unit (RVU) based compensation arrangements are increasingly popular for compensating physicians. Where collected revenue-based systems—historically common in group practice, for example—reflect the individual physician’s underlying payor mix, RVU systems are payor-mix neutral. A RVU system[1] is therefore attractive to a physician employed by a hospital that treats patients regardless of their ability to pay. However, RVU systems may be tainted by payor mix and other market conditions, requiring that the analyst understand and examine the effects of this issue when using compensation survey data to establish fair market value incentive compensation based on RVUs.

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Considerations Related to Solvency 2007 Hart

Generally most actions taken to recover assets in a bankruptcy case involve the need to determine the solvency of the debtor at a particular point in time (often at the time of a transfer of a debtor’s property or the incurrence of a debt by the debtor). In order to establish if the debtor is solvent or insolvent, there must be a proper solvency analysis of selected assets or the subject business. In the following sections, we first define insolvency under the Bankruptcy Code. We then discuss the three traditional tests used in solvency determination, including the evolution and limitations of these tests. We then conclude with a discussion of how and why business valuation techniques provide a better methodology for solvency determination.

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Fall Expert What Goes Around Comes Around

WHAT GOES AROUND COMES AROUND:

Established health care valuation principles from the 1990s remain in full force and effect according to Mark Dietrich, CPA/ABV, founder of Mark Dietrich, CPA, PC, and author of the following article. Mark is coeditor and author of several chapters on medical practices and regulatory matters in Business Valuation Resources’ The Complete Guide to Healthcare Valuation, scheduled for publication in the fall of 2008. He is also a member of the editorial advisory board of CPA Expert. You can access his blog at http://cpanet.typepad.com.

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CRACKING THE CODE

Understanding the Report

Whether the business valuation report is your first or your fiftieth , two very important factors must be considered before starring your review. The expert who submits it must be sufficiently qualified to value the subject company, and the expert’s procedures and report must be in compliance with appropriate business valuation standards. The absence of either could disqualify the expert from testifying and keep the report from being admitted, which could help your case tremendously if the opposing expert has failed to meet the requirements or be devastating if the expert in question is your own.

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