In response to pending health reform act programs and the difficult economy, medical practice consolidation continues apace, particularly through hospital purchases of doctor groups. 

Maintaining traditional referral relationships between acquired doctors and hospitals, strict compliance with fraud and abuse and Stark law standards is necessary. 

The purchase terms must meet fair market value standards. 

If a hospital that pays too much for a practice, it could find itself in hot water with federal and state regulators alleging the excess payment constitutes a kickback.

Establishing FMV (Fair Market Value) in an acquisition is more art than science.

Since there is no method to get the government to "sign off" on price terms, hospitals need to be aware of accepted valuation methods and may find it helpful to obtain a third party FMV opinion. However, to ensure that such opinions pass muster, the assumptions and analysis must also be scrutinized.

Take a look at some of what will be discussed:

• What is fair market value and how does Medicare modify the definition?
• Are there accepted benchmarks for valuing physician practices?
• Valuing minority or partial acquisition interests
• Are "comps" worthwhile, and how do you use them?
• Types of third party evaluations and opinions
• Which assumptions may conflict with Stark and fraud and abuse standards?
• Critical back-up documentation that must be compiled.

Who should attend? Hospitals, physicians, practice managers, medical groups, health care consultants and facility executives.

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