Q & A Interview on Medical Practice Valuations

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An Interview with Dr. David Edward Marcinko; MBA, CMP™
Karen Caffarini: Reporter: American Medical News]

Hot Topic

Dr David E Marcinko MBAMedical Practice Appraisals and Valuations

[Unedited Question-Answer Interview]


The allocated purchase price must be reported to the IRS. Goodwill is considered a capital asset. Therefore, the seller will want to allocate as much of the selling price to goodwill as possible. The buyer will want to allocate more of the selling price to non-goodwill assets because goodwill amortization is not tax deductible while depreciation and amortization of other assets is tax deductible. This “negotiated” goodwill will stand as the IRS value.“


Thus, the IRS has effectively forced the controversial goodwill determination on practice buyers and sellers. This makes it even more imperative for buyers to specifically identify any hidden practice assets they are acquiring at the time of purchase; or for purchasers to discover them.


Q: What asset might have less value than a toxic credit-debt-obligation [CDO]?

A: A private medical practice


Your comments are appreciated; especially if you have bought, sold or merged a medical practice recently.

Read it here: ama-news-reply

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com


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3 Responses

  1. What physicians need to know when negotiating a medical practice sale or merger

    Experts identify the top factors physicians should consider when negotiating a practice sale or merger.


    Hope R. Hetico RN MHA


  2. Don’t waste money on eMRs

    Investments in new EHR systems may seem like the shrewdest avenue to enhancing value in the market for medical practices looking to sell.

    But, that’s not typically the case. If you’re trying to beef up the value of a medical practice, don’t bother upgrading your electronic health record system, says one expert, since hospitals will have ideas of their own.


    Dr. David Edward Marcinko MBA


  3. Alyssa Rege: 10 Hospital Transactions & Partnerships, May 2017

    1. After 4-year battle, Cottage Health and Sansum Clinic call off merger
    2. KentuckyOne to spin off 4 hospitals, 4 ambulatory centers
    3. Memorial Hermann adds 2 microhospitals via new joint venture with Emerus
    4. Cedars-Sinai to affiliate with Torrance Memorial Medical Center
    5. Molina Healthcare affiliates with 130-member New York physician practice​
    6. Healthcare Trust of America closes on $150M portfolio for medical office buildings in Arizona, California
    7. Healthcare Trust of America closes on $150M portfolio for medical office buildings in Arizona, California
    8. Prime Healthcare Foundation’s $15M acquisition of CHS hospital collapses
    9. DaVita acquires Purity Dialysis
    10. Tulane Medical Center acquires Lakeview Regional



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