The life sciences industry (encompassing pharmaceutical, medical device, and biotechnology) is facing increased scrutiny regarding payments to health care providers and other referral sources. While the existing disclosure requirements are at the forefront of most compliance strategies, the actual compensation paid for a physician’s time, development efforts, and various advisory roles will be a component that will be examined once disclosed. VMG Health understands the value brought by thought leaders and the acceptable market data for establishing the fair market value compensation for these health care provider consultants. Specifically, our analysis:
• Utilizes multiple, objective data sources as promulgated by Stark
• Analyzes the physician contribution in the context of comparable, third-party market royalty arrangements
• Delineates what type of data to rely upon for the various types of consulting services
• Applies the fair market value standard without considering the value or volume of referrals
VMG Health has twenty years of experience concentrated on healthcare valuation and has obtained national recognition for determining the fair market value through presentations at Pharma Congress and publications such as HFM Magazine, Compliance Today, American Health Lawyers Weekly, and RX Compliance Report. VMG Health has the expertise to deliver defensible documentation to stand up to regulatory authorities if your company or client is facing challenges resulting from the Physician Payment Sunshine Act, state mandated disclosure requirements, Corporate Integrity Agreements, Office of Inspector General Audits, or internal compliance efforts.
VMG Health understands there are various relationships with thought leaders based on the needs of the company and expertise required by the health care provider. As a result, VMG provides several types of analyses related to health care provider compensation.
Internal Hourly Rate Charts – a chart and accompanying report which reflects a robust valuation methodology and outlines three tiers of hourly rates by specialty reflecting various levels of expertise.
Royalty Rate Studies – an analysis of royalty compensation paid to individual physician contributors or teams for the intellectual property conveyed during product development.
Fair Market Value Opinions – a thorough analysis of a subject arrangement and a fair market value determination.
Compliance Process Review & Development – an in-depth analysis or assistance with development of a company’s processes, methodologies, algorithms or protocols to establish compliant compensation.
For more information about VMG Health’s life sciences valuation services, please contact Jen Johnson, CFA.
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