Stout was engaged by a large not-for-profit health system that consummated a member substitution transaction with a seven-hospital health system to assist with the purchase accounting related to the transaction. Our scope of work included establishing the overall enterprise value of the merged health system as well as its seven hospitals, a physician group, an independent diagnostic testing facility, and three non-controlling equity interests owned by the system. Further, we determined the Fair Value of the acquired tangible and intangible assets. Specifically, Stout appraised 18 owned properties, including hospitals, physician offices and a parking garage, and evaluated the lease terms at 11 leased properties. Further, we inventoried and determined the Fair Value of all personal property as well as the value of the acquired intangible assets – Trade Name and Trademark and Medicare licenses.

Additionally, Stout appraised the real and personal property for purposes of establishing insurable value under an insurance cost new premise of value.