Part 2 of the webinar series examines CMS’ extensive discussion of Stark FMV for compensation arrangements. In the new Stark regulations, CMS explicitly disclaimed much of the industry’s popular practices for setting physician compensation using survey data. In rejecting such practices, the agency went as far as providing retroactive clarification on its past preamble commentary that many industry participants had misinterpreted and misapplied in valuing physician compensation. In the updated commentary, CMS provided significant analysis of how Stark FMV should and should not be determined in reference to survey data. The agency also provided critical comments on valuation methodology and the use of market data that have a direct impact on healthcare compensation valuation practice. The totality of this commentary clearly indicates that common industry practices based on survey data will not meet the requirements of the new Stark FMV definition that is applicable to compensation arrangements. Topics covered in the webinar include:

• CMS’ commentary on survey data usage;
  
• The implications of CMS’ three compensation examples;
  
• The impact of the new valuation date for compensation arrangements;
  
• The limitations placed on survey data usage under the precluded reliance doctrine;
  
• Meeting the requirement of buyer neutrality;
  
• Using a commercially reasonable valuation method;
  
• Valuing the economics of the subject transaction; and 
  
• Evaluating practice losses as an FMV issue.

• Restate CMS’ commentary on survey data usage;
  
• Describe implications of CMS’ three compensation examples;
  
• Restate the impact of the new valuation date for compensation arrangements;