How to Set a Value for a Medical Practice
Medical value is the subjective opinion of the worth of a particular medical practice. Medical value is different than price, since value is set, while price can be negotiated. Medical practice value is often determined in part by court cases over these practices. Sometimes value is determined by a law, while other times the value is determined by an appraisal. While medical practitioners should have a professional appraiser set the value for their medical practice, some medical practitioners can appraise their medical services themselves.Things You'll Need
- Business data
Instructions
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Research the fair market value of particular medical services before taking other factors into consideration.
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Look at how much other medical practices charge for similar medical services.
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Look at the value of the assets that the medical practice has, such as diagnostic equipment, and compare these assets to the practice's liabilities.
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Take into consideration what the patient wants, needs and what the patient is able to afford. Practices that do not provide what the patient needs or provide patient services for too much money can have less value to patients.
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Research the supply and demand of the medical practice. Practices that provide services that are in short supply and high demand will have more value, while practices that have high supply and small demand will not be as valuable.
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Consider factors such as whether or not the medical practitioner is merged with a hospital chain or group.
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Find out whether or not the medical practitioner has recently been a part of a lawsuit with a former patient.
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Use your subjective interpretation of the value of the medical practice based on the examined data in order to estimate the value of the medical practice. This subjective action cannot be taught and can only be learned through experience.
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Write a narrative text that explains in detail how the medical practice was appraised.
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