Home Profile Services Leadership Clients News Events Contact Contact
Valuation Consulting Commercial Reasonableness Commercial Payor Reimbursement-benchmarking Litigationsupport Expertwitness Financial Analysis Modeling Intermediary Services Certificate of Need ACO Valuemetrics Strategic Consulting Industry Research Services

On December 20, 2017, the proposed tax reform bill, H.R. 1, developed by Republicans, passed both houses of Congress after the U.S. House of Representatives voted in favor of a reconciled Senate-version of H.R. 1. The bill, which was signed into law on Friday, December 22, 2017, by President Donald Trump, repeals the tax penalties associated with the Individual Mandate, a provision within the 2010 Patient Protection and Affordable Care Act (ACA), a/k/a Obamacare. The Individual Mandate required most individuals to maintain health insurance coverage, or face a tax penalty (the 2017 tax penalty was $695 per adult, $347.50 per child, or 2.5 percent of household income, whichever was greater). This provision was originally intended to lower the average price of health insurance by incentivizing the enrollment of healthy (and therefore less expensive) individuals in the health insurance market.
As discussed in the first installment of this three-part series, private equity (PE) is a capital funding source that is not available through a public exchange and is often utilized to: (1) expand a business; (2) fund new technology; or, (3) supplement an established entity's working capital. The first part of this three-part series set forth an introduction to the current PE activity in the healthcare services sector. This second installment will discuss the valuation approaches utilized to develop an opinion as to the fair value of a target for the purposes of PE investment, specifically as it relates to the healthcare sector. (Read more...) 
The first part of this six-part series set forth an overview of the due diligence imperative for valuation professionals, in the context of the Four Pillars of Healthcare Value, i.e., Reimbursement, Regulatory, Technology, and Competition. The second and third installments reviewed the due diligence process related to the reimbursement and regulatory environments, respectively. This fourth installment will review the due diligence process as relates to competition in the healthcare industry.  (Read more...) 
On November 13, 2017, the Food and Drug Administration (FDA) announced the approval of the first "digital pill" - a drug that will track medication ingestion by a patient.  Specifically, this pill is a digital version of Abilify, an antipsychotic used to treat conditions such as schizophrenia, bipolar and depression, otherwise known as Abilify MyCite.  Patients can sign a consent waiver allowing a physician and up to four other people to view electronic data on a smartphone application related to the date and time the pill was taken, and viewing permissions can be revoked by the patient at any time.  (Read more...)
On November 1, 2017, the Centers for Medicare and Medicaid Services (CMS) published a final rule cutting Medicare Part B and state Medicaid payments under the 340B Drug Discount Program (340B Program) by an estimated $1.6 billion in 2018.  To illustrate the payment reduction, a drug with an average sales price of $1,000 is currently reimbursed at $1,060, but would be reduced to $775 under the final rule.  The 340B Program was originally passed in 1992 as a way to decrease the cost of pharmaceuticals reimbursed to hospitals under Medicare Part B and state Medicaid programs by requiring pharmaceutical companies to give rebates to hospitals and clinics with a high volume of low-income patients.  Since its passage, the 340B Program has been expanded three times, most recently by the 2010 Patient Protection and Affordable Care Act (ACA). 

In Memoriam
Robert James "Bob" Cimasi
It is with great sadness and a heavy heart that we inform you of the passing of Robert James Cimasi, MHA, ASA, FRICS, MCBA, CVA, CM&AA, a great friend, mentor, and professional colleague to us all. Bob was a nationally known lecturer on healthcare industry topics and a renowned author of nine acclaimed books; numerous chapters in legal treatises and anthologies; published articles in peer reviewed professional journals and industry trade publications; and, was often quoted by the healthcare industry press. He was a pioneer of the business and healthcare valuation profession, and devoted a significant amount of his professional life to selflessly giving back to his colleagues, through mentorships; fulfilling requests for data; professional education; and, volunteer efforts on a wide array of association and society board and committee positions. Although Bob had already transitioned from his role as President of Health Capital Consultants, he continued his passion of reading, writing, healthcare consulting, and sharing his experience with others until he passed, and his knowledge, values, and legacy will live on at Health Capital Consultants
Advanced Distance Education to Launch in 2018

The Institute for Healthcare Valuation (IHV) & Consultants' Training Institute (CTI) are pleased to announce premier healthcare valuation training through a distance education program, the Certificate of Educational Achievement (CEA) for Advanced Education in Healthcare Valuation. The program will launch in 2018 and will bridge the interdisciplinary nature of healthcare valuation to include: the Four Pillars of Healthcare (regulatory, reimbursement, competition, and technology); the market forces shaping the U.S. healthcare industry; and the valuation of healthcare enterprises, assets, and services. Legal professionals and healthcare providers, as well as those wishing to expand their scope of activities in healthcare valuation engagements and those seeking to enhance their current healthcare valuation service lines, will gain comprehensive knowledge through completing the expansive program. The program has been developed and is being presented by industry thought leader Health Capital Consultants, alongside a blockbuster faculty of healthcare subject matter experts from the legal, federal regulatory, and valuation professions.

HCC President, Todd Zigrang, is honored to have co-authored the chapter entitled, "The Threshold of Commercial Reasonableness," in BVR/AHLA's newly published Guide to Valuing Physician Compensation and Healthcare Service Arrangements (2nd Edition).