HealthCare Appraisers - FMV On Call-culator

A Sophisticated Valuation Tool for On-Call Compensation Arrangements Incorporating an On-Call Factor™

Ensuring physician specialist coverage for their emergency departments is a significant challenge faced by many hospitals. A related challenge is determining the fair market value (“FMV”) of payments that may be made to on-call physicians.

An independent appraisal obtained from a reputable healthcare valuation firm is one approach to establishing and defending the FMV of on-call payments. However, for those hospitals seeking a programmatic solution to the on-call valuation problem, HealthCare Appraisers ("HAI") has developed the On Call-culator™, which incorporates its proprietary scoring model to determine an On-Call Factor™.

Benefits of Using the On Call-culator™

The FMV On Call-culator is a cost-effective approach to determining the FMV of on-call compensation arrangements, designed by one of the nation’s leading experts in healthcare valuation and on-call compensation.

Benefits of the FMV On Call-culator include:

Efficiency – A user-friendly, web-based interface provides real-time values.
Experience – A sophisticated decision model based upon a decade of experience and a proprietary database of thousands of call arrangements.
Relevance – The model captures and analyzes the specific characteristics of the subject on-call arrangement (including those identified by the OIG Advisory Opinion No. 07-10).
Consistency – The model produces consistent and objective FMV outcomes for all pertinent physician specialties.

In response to the unique difficulties in valuing compensated call arrangements, HAI developed a proprietary scoring model to determine an On-Call Factor™, which is then used in calculating corresponding on-call compensation rates. A Web-based version of this valuation tool is now available on a licensed basis to hospitals and health systems.

An efficient and cost-effective approach to determining FMV

The On Call-culator is a powerful, web-based, valuation tool that provides an efficient and cost-effective approach to determining the FMV for on-call compensation arrangements. The On Call-culator provides the user with a single page printout which, when coupled with the Master FMV Opinion provided pursuant to the license agreement, is intended to document and support the indicated payment rate.

The tool incorporates the following arrangement-specific information through convenient drop-down menus:

The subject physician specialty
The hospital’s trauma status designation
The number of physicians available to participate in the subject call rotation
The frequency of on-call events, including calls handled over the telephone and those requiring a physician’s immediate presence
The hospital’s emergency department payor mix for unfunded and underfunded care

The FMV On Call-culator does not give consideration to the volume or value of any patient referrals, nor does it rely on market data which may not be reflective of arm’s length transactions.

By design, the On Call-culator maintains an aspect of conservatism as should be the case anytime a valuator’s hands-on judgment is absent. A traditional appraisal process may identify other relevant factors and circumstances which, in the independent appraiser’s opinion, may result in a higher indication of FMV.

Test drive the On Callculator™ today

To explore the functionality of the On Call-culator, contact HealthCare Appraisers at
(561) 330-3488 or e-mail us at info@hcfmv.com.