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Business Valuation for a Joint-Ventured Radiation Therapy Center
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Business Valuation for a Joint-Ventured Radiation Therapy Center

Client/Profile

A community hospital that is part of a regional health system in Pennsylvania

Challenge/Situation

To provide transaction support to in-house and external counsel related to a joint venture transaction. Counsel required a business valuation for the hospital’s radiation therapy department, in preparation for a joint venture combining the radiation therapy businesses of the hospital and a radiation oncology group practice. The joint venture was to own and operate the combined businesses, and rationalize investments, resources and care.

Process

Our work considered the implications of facility cost and overhead allocations, and ensured that the revenue streams were correct. We also had to consider the potential impact of a newly implemented modality, IM-RT, in our analysis. The joint venture involved professional services, billing and management arrangements, all of which had to be evaluated from a fair market value perspective.

Results

Veralon completed the valuation under significant time constraints, and arrived at a valuation conclusion that was acceptable to all the parties, including health system legal counsel. The transaction closed.