An article entitled, "Appropriate Use of Extraordinary Assumptions and Hypothetical Conditions," authored by HCC President, Todd A. Zigrang, MBA, MHA, FACHE, ASA and HCC Senior Vice President, John R. Chwarzinski, MSF, MAE, was published by NACVA in the June 11, 2015 edition of NACVA QuickRead.

Article Summary:

With healthcare evolving, how can practitioners project the future benefit stream related to outpatient services? In this article, the authors discuss the use of hypothetical and extraordinary assumptions. They argue that use of these assumptions requires careful consideration as they can have a significant effect on value. In addition, the valuation analyst must adhere to the disclosure requirements set forth in USPAP which requires the valuation analyst to clearly and accurately disclose all assumptions used in the assignment. (Read more...)