This two-part BVR webinar series provides a critical and in-depth assessment of the new definitions of fair market value under the regulations for the federal physician self-referral law commonly known as “Stark.” Many in the healthcare valuation industry have viewed the updated definitions, along with new commentary from the Center for Medicare & Medicaid Services (CMS), as promoting “business as usual” for healthcare valuation practice. Timothy Smith, however, begs to differ. Smith was a major public commenter to CMS during its recent update of the Stark regulations on FMV matters. After spending significant time analyzing CMS’ new definitions and commentary, he believes these updates usher in critical changes in how accepted valuation principles and practices are used to determine Stark FMV. Smith believes the new Stark FMV is an overall game-changer for healthcare valuation.

The webinar series highlights content from BVR’s forthcoming guide to Stark FMV. A unique aspect of this guide is that it provides the actual text of the public comments CMS responded to in the preamble commentary to the final Stark regulations. The guide allows readers to review the full extent of the issues the industry raised to CMS in response to the agency’s proposed regulations on FMV. It also presents CMS’ summary of these public comments and its response to them. The new guide also includes an entire section devoted to examining all of CMS commentary on various topics and issues, along with insightful analysis and discussion of its implications for healthcare valuation practice.

The first webinar in the series will examine changes in the regulatory definitions of FMV and general market value (GMV), a key concept used in the definition of FMV. It will also evaluate CMS’ commentary on these definitions and its impact on valuation practice across the valuation disciplines of business, compensation, real estate, and machinery and equipment. The webinar will assess how Stark FMV functions as a standard of value that can be applied on a stand-alone basis, without supplementation from other definitions of FMV that are commonly used in the industry. It will also compare and contrast Stark FMV to the definitions of FMV found in Revenue Ruling 59-60 and the International Glossary of Business Valuation Terms, along with the real estate definition of market value from USPAP.

The webinar will also discuss CMS’ new finding that Stark FMV should be consistent with the “general concepts and principles of the valuation community.” It will explore the implications and consequences of this finding for healthcare valuation practice in all four valuation disciplines (BV, CV, real estate, and M&E). The webinar will also discuss key issues of valuation methodology and practice that emerge from CMS’ commentary on new FMV definitions. Topics covered include:

• The FMV of the subject transaction 
  
• The economics of the subject transaction;
  
• Buyer neutrality versus the hypothetical buyer;
  
• The precluded reliance doctrine;
  
• Using a “commercially reasonable” valuation method; and
  
• The new valuation dates.

• Define Stark Fair Market Value
  
• Describe buyer neutrality versus the hypothetical buyer;
  
• Describe a “commercially reasonable” valuation method