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Fair Market Value Opinion on ACO Leadership, Management, and Clinical Services


A large multi-hospital health system in a highly competitive urban market


To determine the fair market value of ACO leadership, management and clinical services provided under a services agreement and to facilitate the formation of a partnership between the health system and a large physician group with relevant expertise.

Value-based initiatives are new to the healthcare market, and are therefore difficult to value. The resources brought to bear to develop and sustain such capabilities vary across the industry can be difficult to measure.


Veralon worked extensively with the physician group to understand the resources the group would utilize to lead and manage value based payment and clinical integration initiatives for a division of the health system.

We prepared an independent fair market valuation of the services and supporting analyses, obtaining input from the physician group and health system management. Veralon advised the client regarding contract provisions and deal structure.


The health system and the physician group successfully closed the deal, which was integral to the health system’s integrated-network, quality of care, and regional growth strategies for a major hospital services division.