Fair Market Valuations & How They Impact Your Earnings
Feb 25, 2021
Understanding the factors that determine how much we get paid is one of the most important steps in negotiating effectively and getting paid what we’re worth.
In 2021, the new Medicare guidelines are set to impact how much some physicians are going to earn, and for many of us, fair market valuations are going to be used to adjust our packages.
Yet, fair market value is a term that’s so ambiguous and vague, it’s hard to know what it effectively means, and what the outcome will be for our contract negotiations.
What drives hospital systems to put in place fair market valuations? How can we navigate a fair market value if it comes up?
In this episode, I give some detail on the meaning of fair market value and how it can impact you in getting paid what you’re worth.
Three Things You’ll Learn In This Episode
- How we can navigate a fair market valuation
Hospital systems have fair market valuations to protect themselves from hefty fines and possible legal ramifications. They want to make sure they are safe, and as physicians, we end up as cogs in that system. Being involved in the valuation process helps us balance the equation.
- The factors that go into calculating fair market value
There are many things involved in determining your fair market valuation. This includes where you are, your skills, the value you offer to the hospital, the demand for what you do, and other roles you serve or abilities you have outside of your clinical skills.
- What fair market valuations are meant to prevent
Fair market valuations were created to avoid kickbacks, overutilization of services, and to reduce the risk of the physicians ordering extra things that are not necessary for the patient’s care.