Case Studies

Assignment:
Retained by several large group practices, each with revenues in excess of $50M dollars, to audit their financial statements.

Result:
These audits included addressing specific accounting and audit issues unique to the health care industry. We presented our findings to the groups’ audit committees, which included recommendations for additional procedures and internal controls, many of which were adopted by management.

Assignment:
Retained by major New York hospital systems to value both single-specialty and multi-specialty groups under consideration for acquisition by the hospital systems.

Result:
We performed due diligence procedures on the targeted practices and prepared projections of future earnings to determine the practices’ fair market value for potential acquisition. Based on our findings, the hospitals were able to successfully negotiate and close on these transactions.

Assignment:
We were retained by several large group practices to develop profit-sharing allocation methodologies for the physician-owners of the practices.

Result:
Working directly with the management of several large practices, each comprised of 40+ physician-owners, we developed and implemented profit-sharing allocation methodologies. The results provided for an equitable distribution of profits, which were ultimately accepted by management.

Assignment:
We were retained by several hospitals to provide fair market value opinions.

Result:
We used our established methodologies to perform fair market value assessments for the fees to be paid for the outsourcing of various departments, including nuclear imaging, emergency room, and hospitalist programs. Our assessments allowed the hospitals to move forward with their outsourcing plans.

Assignment:
A large medical laboratory was in need of improved financial reporting.

Result:
We developed and implemented more meaningful financial reporting, which allowed management to better assess and monitor the lab’s profitability.

Assignment:
Called upon by several single-specialty and multi-specialty groups to assist with consolidating several practices into a single large group, commonly referred to as a “mega-group” or “super-group”.

Result:
We were intimately involved in all aspects of the group consolidation, including governance issues, financial modeling, banking and financing, internal controls and selection of a management service organization, as well as additional operational issues up to and including a successful launch.

Assignment:
A major New York hospital required benchmarking and other financial analyses to evaluate the finances of a targeted medical practice.

Result:
We worked closely with hospital’s management in analyzing the financial results of a large single-specialty medical practice, which included specific benchmarking analyses. Our professionals advised the hospital’s CFO and attorneys in structuring a purchase of that practice, which included structuring the compensation arrangements between the hospital and the physicians. Our efforts resulted in a successful transaction for the hospital.

Assignment:
We were retained by a major health care law firm whose client, a large multi-specialty medical practice, required the services of a specialist to develop an acceptable revenue allocation methodology for the practice’s physicians.

Result:
We developed a methodology for the sharing of designated health service (“DHS”) revenues amongst the physicians in the practice. As part of the engagement, we considered various allocation methodologies, each complying with both federal and state regulations, including those promulgated under Stark. In the end, the practice-owners were able to agree on an accepted allocation methodology, which was then implemented.

Assignment:
We were engaged by several large radiation treatment and diagnostic imaging facilities to prepare start-up projections for proposed facilities.

Result:
Working closely with investor groups, we developed projections using both industry-wide benchmarks and specific revenue and cost data provided by management. Our efforts allowed the investor groups to raise additional capital and attract physicians to work in the facilities.

Assignment:
We were engaged to develop long-term strategic plans for physician groups.

Result:
We worked with both lead physicians and management in developing strategic plans that addressed such critical areas as new clinical service offerings, practice acquisitions, capital expenditures, long-term financing, and exit strategies for the more senior physicians. This allowed practice owners to develop strategies for future growth and stability.