Valuation and Financial Services
Everything about healthcare is changing, and that means a seismic shift in the financial atmosphere of your hospital or health system. Principle Valuation, a member of Prism Healthcare Partners, is a national, full-service valuation firm specializing solely in the healthcare industry.
Principle Valuation’s staff have expertise in all healthcare asset classes, including real estate (land and improvements), equipment, intangible assets, and business enterprise. Our team members hold designations such as ASA, CFA, CPA and MAI. Leveraging decades of collective experience and knowledge, we provide valuations that are as accurate, objective, and fair as possible to help your organization’s financial position and support critical efforts such as:
- Obtaining financing for purchase, sale, expansion, or renovation
- Complying with government and accounting reporting requirements, including Stark Law compliance and purchase price accounting for acquisitions
- Reducing depreciation expense
- Reducing insurance costs
- Lengthening the expected life of structural assets and extending bond amortization periods
In addition to working directly with healthcare providers across the country, Principle Valuation regularly partners with banks and law firms, and our valuations and asset studies have been reviewed and accepted by the major accounting firms.
Principle Valuation offers a range of services tailored to the needs of today’s healthcare providers:
Financial Reporting and Business Valuations
Principle Valuation has extensive experience providing business enterprise and stockholders’ equity valuations to support mergers and acquisitions, joint venture/partnership formations, unwinds and divesture, regulatory compliance tax and accounting issues, management planning, litigation support, estate planning, and fairness options. We serve healthcare entities including health systems, hospitals, diagnostic imaging centers, ambulatory surgery centers, physician practices, and home health agencies, among others.
- Physician Practice Valuations. Principle Valuation’s physician practice valuations provide potential buyers and sellers with an objective and accurate fair market value (FMV) assessment.
- Physician Compensation and Service Arrangement Studies. As regulations tighten and compensation agreements become more complex, regulators are increasingly scrutinizing physician arrangements. Principle Valuation provides full-service analysis of compensation and services arrangements to help you ensure they meet the strict regulatory requirements of Stark Law and the Anti-Kickback Statute.
- Valuations for Financing. Principle Valuation provides valuations that allow healthcare and seniors housing entities to obtain conventional, FNMA/FMAC, and HUD 232/242 financing for acquisition, new construction, expansion and renovation, and refinancing.
- Real Estate Tax Issues. Our knowledge of the healthcare real estate component of your organization can greatly assist in determining or verifying a reasonable market value for your tax assessments. With recent court rulings in various states challenging the tax-exempt status of not-for-profit hospitals, healthcare providers must be diligent in ensuring the assessed values of their real estate are accurate. Principle Valuation’s real estate tax services can yield significant property tax reductions.
Asset Relifing, Inventory and Appraisal Services
Our industry-leading study of the asset lives of hospital buildings and equipment at more than 400 institutions found that actual lives are much longer than industry guidelines have suggested. However, many hospitals and health systems have not adjusted to newer regulations that could save them millions of dollars. By reviewing the depreciation and the remaining useful life of equipment and buildings, we can assist you with obtaining financing and improve your bottom line. Additional considerations may include insurance savings and reduced annual capital expenditure costs.
Ramona Lacy, FACHE, Timothy Baker, Kenneth Lowrie, RPh and Jan van Londen | May 2017
Timothy Baker and John Holmes | November 2016