Responding to Disruptive Innovators, Pt. II

by John Harris, Director & Carol Davis, Principal
HFM Blog
February 2016

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The forces that transformed taxi service and video distribution are now transforming health care. In the manner of Uber and Netflix, disruptive innovators are revolutionizing how healthcare consumers access services, as well as how providers organize and deliver care. The impact can be swift and profound. In December we examined two types of disruptors in health care: revolutionized […]

Should You Stay or Should You Go?

by John Harris, Director & Molly Johnson, Manager
HFM blog
March 2015

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Should I stay or should I go? If I go there will be trouble And if I stay it will be double. -The Clash In the next several months, more than 200 Medicare Shared Savings Program (MSSP) ACOs face a big decision. What had looked like a simple choice to “stay or go” will be […]

Improving Care Delivery: Learning from New York State’s DSRIP Initiative

by John Harris, Director & Idette Elizondo, Manager
HFM Blog
January 2015

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  As a Zen master might say, “Change must come from within.” Everybody can point to fundamental problems with healthcare delivery, especially for low-income populations. But managed-care rewards and penalties and other efforts have not been enough to transform the delivery system. New York State is working to encourage “change from within” through its Delivery […]

Fair Market Value Versus Strategic Value

by Karin Chernoff Kaplan, Director & Denise Palencik, Senior Associate
HFM Blog
February 2015

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  In evaluating the fair market value (FMV) of healthcare entities, we often are asked why we do not adjust the revenue stream of the business being evaluated to reflect the payment rates of the potential buyer. The answer is based on the Stark and Anti-Kickback statutes, and in the difference between FMV and strategic […]

Raising the Bar on Quality Incentives In Physician Compensation

by Karin Chernoff Kaplan, Director
HFM Blog
May 2015

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The transformation to a value-based healthcare system is underway, as is the spread of programs that pay physicians for improving the quality of care. Whether called value-based payment, paying for quality, or pay-for-performance, such programs are becoming a more significant aspect of compensation for employed physicians and in co-management agreements—but they are not always used […]

The Evolving Rationale for Consolidation in Health Care

by Dan Grauman, Director & CEO & Katherine Cwiek, Manager
HFM Blog
July 2015

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Consolidation in the healthcare industry is well-established and moving full-steam ahead. There were an average of 100 hospital transactions per year between 2011 and 2014, compared with 60 per year in the preceding four-year period.a More than 60 percent of U.S. hospitals are now part of a health system.b In most major metropolitan areas, the […]

Dialing Down the ‘Deal Heat’ During Due Diligence

by Daniel M. Grauman, Managing Director & CEO
HFM Blog
August 2015

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As the temperature topped 98 degrees on the East Coast last month, I was reminded of the “deal heat” we often witness in healthcare transactions. Sometimes the intensity of negotiating deal terms can cause participants to lose perspective on the big picture. In our last post, we discussed the hot trends in hospital and insurer consolidation, […]

Determining Appropriate Physician Compensation Levels

by Karin Chernoff Kaplan, Director & Rich Chasinoff, Principal
HFM Blog
June 2015

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  Providers and valuators often are tasked with determining the fair market value (FMV) of employee compensation arrangements. Although each arrangement has unique issues, most valuation processes start by looking at quantitative measures. Creating a buttoned-up analysis supported by published benchmarks is relatively simple. However, qualitative factors also influence compensation FMV. The Quantitative Standard Using […]

Responding to Disruptive Innovators, Pt. I

by John M. Harris, Director & Carol Davis, Principal
HFM Blog
December 2015

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John M. Harris and Carol Davis write that health systems need to develop strategies to respond to four specific types of disruptive innovators in health care.