Determining Fair Market Value of a Professional Services Agreement for Bone Marrow Transplant Services
Client/Profile
Tertiary care center that provides comprehensive oncology services
Challenge/Situation
To provide expert opinion on the fair market value of a management agreement between the medical center and an established physician group for the group to provide bone marrow transplant (BMT) and management services.
The group was to provide clinical and administrative oversight of the BMT program and services, including staffing the position of Chief, Adult Stem Cell Transplant Service. The group’s clinical services were to provide professional services that contribute directly to the diagnosis or treatment of an individual patient involved in a BMT.
Process
Veralon provided a fair market opinion of the proposed compensation to be paid to the physician group, based on volume estimates, revenue estimates, and expense estimates for the BMT program.
Results
The tertiary care center moved forward with the management agreement.