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Physician Goals Determine Appraisal Acuity Levels
By Staff Writers 
Medical office valuation is as much art as fair-marketing accounting science. And, most physicians are unaware that – much like an IRS audit – there are several levels of acuity which may be obtained for various reasons. Although not standardized, the following three acuity levels are typical valuation engagement types:
The Comprehensive Valuation
An extensive service designed to provide physician-owners and/or potential purchasers with an unambiguous opinion range on the value of a medical practice, ASC or healthcare entity. It is supported by all procedures that appraisers deem relevant to the engagement with onsite visit mandatory.
This valuation type is suitable for contentious situations like divorce, partnership dissolution, sale, etc. The report includes a formal written Opinion of Value suitable for litigation support activities like depositions and trial. It is also useful for external reporting to bankers, investors, the public, etc.
A Limited Valuation
This engagement type is the next step in acuity from a comprehensive appraisal as it lacks the performance of additional procedures that are suggested in an USPAP appraisal.
It can be considered an “agreed upon procedures” appraisal that should only be used in circumstances where the client is the only user of the appraisal or as an organic growth ingredient; but not for external reporting. No onsite visit is needed for this US mail or fax delivered valuation.
A formal Opinion of Value is not rendered.
Ad-Hoc Valuation
This is the lowest level engagement where the appraiser is to provide a very gross and non-specific approximate indication of value based upon the performance of limited benchmark procedures by the firm.
No onsite visit is needed. Neither a written report nor an Opinion of Value is rendered. May be a voice based consultation.
Other Engagements:
Although not strictly valuation acuity levels, other engagement types include:
Forensic Investigations
These provided for medical income and personal asset determinations and tracings as an essential modified component of most all medical practice valuations services.
CYA Investigations
This report is an opinion whether or not a valuation is required. It is ideal for the physician client or health law attorney who is unsure if a practice has value or wishes to “cover your assets”.
Conclusion
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