Physician Compensation Valuation

healthcare value
with clarity.

In an environment subject to strict regulatory compliance and stiff financial penalties, it is imperative that physician compensation arrangements comply with fair market value (FMV) and commercial reasonableness requirements of the Stark Law, the Anti-Kickback Statue, and all other regulations governing transactions in the healthcare industry.

Comprehensive Guidance

HMS Valuation Partners works with hospitals and healthcare systems to provide physician compensation FMV opinions on all specialties and non-physician specialties. Having worked solely within the healthcare industry for over 20 years, we’ve completed thousands of physician compensation FMV opinions that have allowed healthcare entities to make value enhancing business decisions and stay compliant while mitigating risk. We have the experience and depth of knowledge to provide guidance in all forms of compensation arrangements, including merges & acquisitions, physician employment, ER call coverage, medical directorships, etc.

In-Depth Approach

We consider multiple approaches to fair market value (Cost, Market, and Income Approaches) in each physician compensation analysis and consider each of these within the context of the circumstances surrounding the transaction inclusive of the specific terms, stackable compensation items, production/financial performance, and any other unique factors involved. Our in-depth review of each of these approaches ensures our clients enter into economic transactions knowing the physician compensation terms meet the legal and regulatory scrutiny necessary to feel secure.


Valuation and Consulting Services in the following areas:

Physician Employment Valuation

Physician Foundation Model Valuation

Income Guarantee/Recruitment Valuation

Telehealth / Telemedicine Valuation

Hourly Staffing/Employee Leasing

Medical Directorship Compensation

Professional Clinical Services (i.e., EKG Reads and other Diagnostic Services)

Graduate Medical Education Programs

Value-Based Incentive Programs


Information Technology Services / Software Licensing

Retinopathy of Prematurity

Long-Term Acute Care / Hospice Services

Subspecialty Services (i.e., Sleep Lab and Kidney Dialysis Services)

Mental Health Assessments

Speakers Bureau / Finder's Fees

Other compensation transactions between DHS entities


For more information on these FMV services, please contact one of our experts today:

Joe Aguilar

Partner—MBA, MPH, MSN, CVA

Don Crawford

Partner—MBA, CVA

Related Articles

January 8, 2020

In an article published by Compliance Today this month, Joe Aguilar and Natalie Bell discuss the complexities behind fair market value of physician compensation agreements. With the Bureau of Labor…

July 23, 2020

Published in MGMA, July 2020 as Part 1 of a 3 part series on Fair Market Value (FMV) and Physician Compensation. Physician transactions are highly regulated by federal law, a…

April 9, 2021

A look at the new definition of FMV and its applicability to physician compensation data Amidst the backdrop of an already competitive and highly regulated environment, health systems are facing…

December 22, 2019

Published in MGMA Connection, January 2020 Dr. Smith is a neurosurgeon and is negotiating the compensation terms of her employment agreement. She performs many services that she wishes to be…

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