AHLA Tax & Finance Practice Group Member Briefing

June 5th, 2009 | Income Approach & Methods | Medicare | Noncompete Agreements | Regulatory Matters | Seminars & Publications | Valuing Goodwill

My article Converting Physician Practices to Tax-Exempt Status: Is There an Upside to the Downturn? was published earlier this week as a Member Briefing by the American Health Lawyers Association. I would like to thank the editors, who included Travis Blaisdell at Mintz Levin, for their efforts in translating my submission into a form appropriate for the AHLA audience.  After my Journal of Accountancy article and ABA Health Lawyer article with Reed Tinsley, this is the third most edited article I have had published. The article contains some observations that are particularly important in the current environment.  Among these are the

  1. Import in an appraisal of considering the tax impact of a liquidation when a taxable practice converts to exempt status

  2. Continuing importance of the DCF method in determining whether and to what extent a practice has Intangible Value. I continue to believe that absent extraordinary circumstances, the Cost Approach should not supplant the Income Approach as the appropriate reference point in Healthcare Valuation.

  3. Valuing the Transaction reflected in the transaction documents as required by the Derby case discussed elsewhere in this BLOG

  4. Considering local law as to the enforceability of noncompete and similar provisions

  5. Considering limitations on obtaining both debt and equity capital in the current environment on the discount rate and/or the consideration of marketability.

See this earlier Post: http://cpanet.typepad.com/cpanet/2009/03/exempt-organization-cpe-text.html

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