Seven Reasons To Appraise Your Practice
- Volume 17 - Issue 8 - August 2004
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How To Find Qualified Medical Practice Appraisers
Finding a qualified medical practice appraiser is not always an easy task. Your office accountant may not be familiar with the current managed care environment, the specifics of your medical specialty or even fair market value concepts in health care. Please consider the following guidelines when looking for an appraiser.
• Make sure appraisers use generally accepted IRS methods and have a proven track record with the government for medical appraisals.
• Make sure the valuation is written, substantiates medical practice value, provides detail to support conclusions and is signed by the appraiser.
• Avoid conflicts of interest. Seek an unbiased and independent viewpoint. Buyer and sellers should each have their own independent appraisal done, using similar statistics, accounting measures and economic assumptions.
• Make sure the appraiser will qualify as an expert witness and is presentable on the witness stand, if needed.
• Request references and examples of previous medical practice appraisals.
• Inquire about experience in publishing, speaking and the teaching of professional medical practice valuation techniques.
The Uniform Standards of Professional Appraisal Practice (USPAP) promulgates standards that provide the minimum requirements to which all professional appraisals must conform. USPAP requires appraisers to consider the three recognized approaches to value (the income, market and cost approaches) in order to assess the worth of a practice.
Market pressures are motivating physicians to be proactive to make informed decisions concerning the future worth of their practices. Appraising your podiatry practice on a regular basis can play a key role in obtaining maximum value for your practice.
Dr. Marcinko is a healthcare economist, valuation specialist, Certified Financial Planner and Certified Medical Planner. He is also the Academic Provost for www.MedicalBusinessAdvisors.com, a practice enhancement resource center for physicians and their business consultants.
Dr. Marcinko can be reached at (770) 448-0769 (phone), (775) 361-8831 (fax) or via e-mail at firstname.lastname@example.org.