Michael J. Brocks
Health Care Valuation Experience

A client hospital required advice as to the fair market value of an 8-physician multidisciplinary practice.

We performed a valuation analysis under a variety of scenarios, giving consideration to different combinations.  In addition, a strategic plan was prepared to address the addition of 12 new physicians over a 5-year period.

A large cardiology group requested assistance in structuring a new partner buy-in.  The group also wanted the compensation plan revised to compensate on production verses seniority.

We presented the group with a number of buy-in options.  Also, as part of our services, we placed a fair value on the practice.  Additionally, we offered different compensation agreements based on billings, collections and procedures performed.

A group of surgeons retained us to conduct a feasibility study for the construction of a surgical center.  The local hospital, fearful of losing the surgical revenues, then retained us (in cooperation with the surgical group) to advise them on vehicles to invest in or finance the facility.

We performed the feasibility study and worked with the local hospital on a financing package that provided a certain degree of equity in the surgical facility.  Ascertaining a fair value of the completed surgical center was a key component of the engagement.  The hospital was able to maintain an acceptable level of control of the center.

A major hospital requested assistance in purchasing a number of primary care practices.

We valued over 50 practices for the hospital.  The hospital ultimately acquired 35 of the practices.

One of South Carolina's largest hospitals wanted to purchase the area’s largest radiology group.  The radiology group owned MRI facilities throughout the state.  Additionally, the hospital, which operated a residency program for radiology, wanted to offer ownership interest to select radiologists upon their completion of the residency program.

We valued the radiology practices and the MRI facilities.  We developed a buy-in and a compensation plan for the physicians and the technicians at the MRI facilities.  The hospital then retained us to structure a financing package from a large Southern bank.

The creditors’ committee of a California bankrupt physician group (as a result of a failed clinic) retained us to investigate the missing funds.

We conducted the investigation, which involved numerous practices and clinics.  As part of the engagement, we opined on the fair value of certain practices that were ultimately sold to satisfy debts.  The creditors’ committee ultimately collected most of the monies owed.

A large podiatrist group requested assistance with restructuring their compensation and partnership agreements.  The partnership was composed of religious and non-religious podiatrists.  Complicating the issues was the fact that the religious physicians offered many of their services pro bono.

We interviewed all the doctors and ascertained what would work for all parties.  Some of the practices were sold back to the practitioners at fair market value.  The unique issue of the clergy was resolved amicably.

A large invasive cardiology group requested assistance in developing a business plan (and a value) for a patented Web-based process of purchasing surgical supplies. The process could reinvent the way surgical supplies are acquired.

This engagement is in process.

The Department of Housing and Urban Development (“HUD”) requested assistance in selling over $100 million of Health Care loans held by HUD as a result of default by the borrowers.

We were retained by HUD to tranche the securities and conduct the auction of the loans.  The sale was an enormous success.