• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Q&A: Determining fair market value

Article

The rule of thumb for fair market value hasn't applied for some time, if ever.

Q: Does the rule that the fair market value of a practice is worth one times the net income still apply?

A: No, that rule of thumb hasn't applied for quite some time, if ever. If any rule of thumb applies, it is that fair market value equals two to two-and-one-half times the dividends as defined by IRS Revenue Ruling 59-60.

You can learn more about business valuation at http://www.irs.gov/irm/part4/irm_04-048-004.html. Only a thorough appraisal can determine the value of any particular practice, however, just as clinical rules of thumb don't necessarily apply to an individual patient.

Related Videos
Peter H. Reilly, HUB International
Peter H. Reilly, HUB International: ©HUB International
Peter H. Reilly, HUB International
Robert E. Oshel, PhD
Gary Price, MD, MBA
Victor J. Dzau, MD, gives expert advice
Ron Holder, MHA, gives expert advice
remote patient monitoring
referral
© 2023 MJH Life Sciences

All rights reserved.