Authors: John E. Buerkert Jr., Children’s Health, Jonathan Nowlin, Children’s Health, and Nicholas J. Janiga, ASA, HealthCare Appraisers

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Originally published by the American Health Law Association, Health Law Connections, August 2023 Issue.

Spend any amount of time in the health care industry and it won’t take long to recognize the importance and prevalence of the term “fair market value” or “FMV.” Particularly for attorneys who work on arrangements with physicians or other referral sources, FMV is a routine part of their practice. Structuring an arrangement that is consistent with FMV is not just a “nice-to-have,” but rather is a necessary requirement for many types of health care arrangements.

The goal of this article is to highlight the various roles that the attorney and appraiser play during the valuation process, outline the items to consider when engaging and working with an appraiser, and provide practical recommendations to help educate clients about the importance of the valuation process and gain their trust to ensure they are committed to the valuation process from start to finish.