A national publicly traded hospital system engaged us to conduct a global fair market value (FMV) compensation analysis for wound care management arrangements between its hospitals and three different national wound care management companies.
The arrangements typically include the delivery of some or all of the following: equipment, staff, software, and management services. We were hired based on our expertise in valuing wound care management arrangements and our demonstrated ability to develop global solutions for recurring transactions in a wide variety of circumstances for this client. The goal of this assignment was to enable the client to obtain FMV guidance for current and future wound care management arrangements with multiple management services providers.
Due to the structure of certain arrangements, our analysis required our compensation and capital equipment valuation expertise. By leveraging our FMV analysis and the customized global report, the hospitals were able to streamline their compensation processes and establish FMV-compliant compensation arrangements at the time of the report delivery and for three years thereafter. This facilitated smoother negotiations with wound care managers and supported the client’s goal of maintaining high standards of care and operational efficiency within their hospitals’ wound care programs.