Healthcare Valuation, The Financial Appraisal of Enterprises, Assets, and Services

by Cimasi, Robert James

• ISBN13: 9781118832974
• ISBN10: 1118832973
• Edition: 1st
• Format: Hardcover
• Copyright: 2014-03-10
• Publisher: Wiley

Summary

A timely look at the healthcare valuation process in an era of dynamic healthcare reform, including theory, methodology, and professional standards

In light of the dynamic nature of the healthcare industry sector, the analysis supporting business valuation engagements for healthcare enterprises, assets, and services must address the expected economic conditions and events resulting from the four pillars of the healthcare industry: Reimbursement, Regulation, Competition, and Technology. Healthcare Valuation presents specific attributes of each of these enterprises, assets, and services and how research needs and valuation processes differentiate depending on the subject of the appraisal, the environment the property interest exists, and the nature of the practices.

• Includes theory, methodology, and professional standards as well as requisite research, analytical, and reporting functions in delivering healthcare valuation services
• Provides useful process tools such as worksheets and checklists, relevant case studies, plus a website that will include comprehensive glossaries and topical bibliographies

Read Healthcare Valuation for a comprehensive treatise of valuation issues in the healthcare field including trends of compensation and reimbursement, technology and intellectual property, and newly emerging healthcare entities.

Author Biography

ROBERT JAMES CIMASI, MHA, ASA, FRICS, MCBA, AVA, CM&AA, is Chief Executive Officer of Health Capital Consultants, a nationally recognized healthcare financial and economic consulting firm. With over 25 years of experience in serving clients, his professional focus is on the financial and economic aspects of healthcare service sector entities including: valuation consulting; litigation support and expert testimony; business intermediary and capital formation services; certificate-of-need and other regulatory and policy planning consulting; and healthcare industry transactions including joint ventures, sales, mergers, acquisitions, and divestitures. He is a nationally recognized frequent speaker presenting research papers and case studies at national conferences and is often quoted by healthcare industry professional publications and the general media.

Table of Contents

Foreword

Preface

Acknowledgments

About the Author

Disclaimer

Introduction

The Four Pillars of the Healthcare Industry

Structure of this Text

Reader Tools

Chapter 1 The Chronology of U.S. Healthcare Delivery

1.1 Foundation of U.S. Healthcare

1.2 Early 1900s

1.3 1930s–1950s

1.4 1960s

1.5 1970s

1.6 1980s

1.7 1990s

1.8 2000-2010

1.9 ACA Constitutionally Challenged

1.10 Conclusion

Chapter 2 Reimbursement Environment

2.1 Overview

2.2 Healthcare Revenue Cycle

2.3 Current Reimbursement Environment

2.4 Public Payors

2.5 Private Payors

2.6 Methods of Reimbursement

2.7 Emerging Reimbursement Trends and the Impact of Healthcare Reform

2.8 Conclusion

2.9 Key Sources

2.10 Acronyms

Chapter 3 The Regulatory Environment

3.1 Overview and Trends

3.2 Tax Regulations

3.3 Fraud and Abuse Regulations

3.4 Competition

3.5 Privacy Regulations

3.6 Safety Regulations

3.7 Corporate Practice of Medicine and Related Provisions

3.8 Licensure, Certification, and Accreditation Regulations

3.9 Conclusion

3.10 Key Sources

3.11 Acronyms

Chapter 4 Competition

4.1 Overview

4.2 Economics of Healthcare

4.3 Supply and Demand in Healthcare

4.4 Porter's Five Forces of Competition

4.5 Barriers to Free Market Competition in Healthcare

4.6 Historical Reform Efforts and their Effect on Competition

4.7 Conclusion

Chapter 5 Technology

5.1 Overview

5.2 Management Technology

5.3 Clinical Technology

5.4 Conclusion

5.5 Key Sources

5.6 Acronyms

Chapter 6 Healthcare Reform

6.1 Overview

6.2 Initiatives Leading to Healthcare Reform

6.3 Drivers of Healthcare Reform

6.4 Patient Protection and Affordable Care Act (ACA)

6.5 Paying for Healthcare Reform

6.6 Future of the ACA

6.7 Conclusion: Future of U.S. Healthcare Delivery in an Era of Reform

6.8 Key Sources

Chapter 7 Basic Valuation Tenets

7.1 Economic Principles

7.2 Financial Valuation Concepts

7.3 Conclusion

7.4 Key Sources

7.5 Acronyms

Chapter 8 Valuation Approaches and Methods

8.1 Valuation Methodology

8.2 Alternative Valuation Techniques

8.3 Risk Assessment

8.4 Discounts and Premiums

8.5 VIII. E Related Valuation Assignments

8.6 Conclusion

8.7 Key Sources

8.8 Acronyms

Chapter 9  Costs and Sources of Capital

9.1 Healthcare Financing Options

9.2 Cost of Capital

9.3 Conclusion

Chapter 10 Planning and Process for Healthcare Valuation Engagements

10.1 Defining the Engagement

10.2 Developing the Valuation Opinion

10.3 Conclusion

10.4 Key Sources

Chapter 11 Inpatient Enterprises

11.1 Hospitals

11.2 Long-Term Care

11.3 Typical Valuation Considerations

11.4 Conclusion

11.5 Key Sources

11.6 Acronyms

Chapter 12 The Valuation of Outpatient Enterprises

12.1 Overview of Valuation Considerations Pertinent to Outpatient Enterprises

12.2 Professional Practices

12.3 Freestanding Outpatient Ambulatory Enterprises

12.4 Home Health and Hospice Enterprises

12.5 Conclusion

12.6 Key Sources

12.7 Acronyms

Chapter 13 Other Healthcare Related Enterprises

13.1 Management Services Enterprises

13.2 Third party payors

13.3 Supply Side Enterprises

13.4 Conclusion

13.5 Key Sources

13.6 Acronyms

Chapter 14 Tangible and Intangible Assets

14.1 Current and Future Trends Regarding Tangible Assets

14.2 Classification and Valuation of Tangible Assets

14.3 Current and Future Trends Regarding Intangible Assets Under the Four Pillars: Regulatory, Reimbursement, Competition, and Technology

14.4 Classification and Valuation of Intangible Assets

14.5 Conclusion

14.6 Key Sources

14.7 Acronyms

Chapter 15 Healthcare Services

15.1 Classification of Clinical Related Services

15.2 Classification of Non-Clinical Related Services

15.3 Establishing Fair Market Value and Commercial Reasonableness

15.4 Four Pillars of the Healthcare Services Industry: Regulatory, Reimbursement, Competition, and Technology

15.5 Valuation of Healthcare Services

15.6 Conclusion

15.7 Key Sources

15.8 Acronyms

Chapter 16 The Threshold of Commercial Reasonableness

16.1 Definition of Commercial Reasonableness

16.2 Commercial Reasonableness Analysis

16.3 Conclusion

16.4 Key Sources

16.5 Acronyms

Epilogue

Appendix A: Subject Property Interest

Bibliography

Glossary

About the Companion Website

Index