I’ll be Conference Chair at the Bellagio in Las Vegas November 14-16. I’ll be speaking on Reasonable Compensation issues with a focus on tax matters as well as on qui tam investigations and valuation with Greg Anderson, who is also my co-author on the Financial Professional’s Guide to Healthcare Reform.
The Conference features a number of tracks including an 8-session Valuation “Thread” devoted to critical issues in healthcare valuation, the only Conference to offer Healthcare Valuation professionals a dedicated multi-session program. Here is the program description.
Valuation practice in the Healthcare Industry has become a specialized practice area, similar in complexity to ESOPs, 409A or GAAP purchase price allocation. With the increasing focus of federal and state regulatory authorities on valuation as seen in the recent Tuomey and Bradford Regional whistleblower cases, practitioners need to be up-to-date on the most recent developments to appropriately advise clients and manage risk in their own practices. Upcoming tax law changes from the federal Healthcare Reform legislation bring S Corporation and reasonable compensation valuation issues to the forefront. Perhaps most importantly, the move to physician employment by hospitals has greatly expanded the practice opportunities in Compensation Valuation. If you practice, or want to practice, in the Healthcare Industry, you should not miss this unique opportunity.
The 2012 AICPA National Healthcare Industry Conference features a specialized Valuation Thread built into the Conference Tracks designed to give valuation practitioners the skill set necessary to meet market demand for services. Leading industry experts who are also top-rated speakers in both business valuation and specialty healthcare practice offer participants practical tips and exceptional insight.
Valuation Track Sessions
How Health Information Technology is Changing Physician Practices: Did you know that valuation analysts who receive HIPAA-covered data in the course of their engagement have the same responsibility for securing that data as healthcare providers, including exposure to possible civil and criminal penalties? Did you know that physician practice may receive significant payments from the Medicare program for adopting medical records that should be considered in forecasting cashflow in a valuation? This session is led by the Chief Information Officer of a physician multi-specialty practice and an attorney from the law firm King & Spaulding.
Physician Compensation – Making it to the Promise Land of Black Ink: As the healthcare market experiences increasing consolidation, valuation practice shifts from Invested Capital to Physician Compensation. Timothy Smith, CPA/ABV, one of the thought leaders in this area and editor and co-author of a forthcoming book with the first comprehensive detailing of, and valuation approach to, Physician Compensation, provides rarely seen insight into compensation valuation practice. You cannot value what you don’t understand. Learn what users of valuation services need to understand about physician compensation plans.
Hot Topics in Tax Practice Valuation: Conversion of C Corporation to S Corp status to limit exposure to the new Medicare tax, valuing noncompete agreements and personal goodwill in physician sale transactions and reasonable compensation for tax purposes are all critically important, particularly to the private practice physician sector. Mark Dietrich, CPA/ABV provides insight from both his valuation practice and tax practice and audit experience and introduces his Return on Labor – Return on Capital analytical approach to the issue of reasonable compensation. Mark is also Conference Chair.
Hospital/Physicians Alignment Initiatives: With hospital-physician relationships driving valuation opportunities, new means of compensating physicians to accomplish defined clinical and financial goals must pass regulatory muster. Many agreements now have various clinical, administrative and incentive-based components, each of which must be valued. Participants will learn methodologies and benchmark sources for various components of physician compensation, gain an appreciation of analyzing multi-faceted agreements for commercial reasonableness and learn the latest in incentive-based compensation as implemented by providers across the US. Carol Carden, CPA/ABV, ASA, an industry thought leader and Chair of the AICPA Business Valuation Committee, leads this session.
Analysis of a qui tam Investigation: What to look for in a Valuation Report: With the Tuomey and Bradford Regional cases leading the way, and the not-yet-tried Halifax case on the horizon, valuation analysts need to understand what regulators are focused on when evaluating valuation work done for a transaction or employment arrangement. Greg Anderson, CPA/ABV, CVA and Mark Dietrich, CPA/ABV lead this session, providing considerable insight from their own experience from working with healthcare lawyers and in the regulatory arena. Participants will receive a detailed checklist, developed by Greg and Mark for the legal community, for use in their own valuation practice to identify potential risk areas and items that should appear in a valuation report.
Mergers & Acquisitions, Buy-ins, Buyouts and Noncompetes: Consolidation means practice mergers, private equity acquisitions and increasing value to physician practices. If you want to value something, you have to know what buyers and sellers are transacting. Ron Finkelstein, CPA who has unique experience with private equity transactions, leads this analysis of the value drivers in private practice transactions and the engagement opportunities, including transaction due diligence, benchmarking, tax issues, purchase price allocation, and noncompete provisions. A must-know for the appraiser doing actual transaction valuation.
Pre-Transaction Valuation Planning should consider Post-transaction Financial Reporting: Not-for-profit healthcare organizations contemplating a merger, acquisition or an affiliation, or with previously recognized goodwill on your books need to consider the impact of financial reporting requirements, in particular SFAS 164. This session will assist valuation analysts in addressing valuation issues to non-accountant executives in business development who are often driving the acquisition train as well accounting executives. In particular the session will cover: accounting for an acquisition & the new rules of purchase accounting, annual impairment testing of goodwill, developing and updating fair value estimates, due diligence for pre-deal business plans. Featuring Don Barbo, CPA/ABV and Karen Van Compernolle of Deloitte.
Healthcare Hardball – Ask the Experts: Panel members will include Joseph Lynch of King and Spaulding, Timothy Smith, Reed Tinsley, and Mark Dietrich answering your questions about the difficult problems you confront in your practice. Panel members will be available to take questions from you BEFORE the session if you want, questions can be written down and provided to an AICPA Conference Team member, or you can ask your question during the session.